Fuel Futures: Diesel Will Spike on IMO2020
New marine fuel rules to boost diesel prices for at least a year -analystsGlobal prices for diesel and marine fuels should rise by October ahead of a January switchover to new, very low-sulfur marine fuels, and remain higher for at least a year as refiners shift production to make more of the new fuels, analysts said.Marine fuels containing no more than 0.5% sulfur by weight, down from the 3.5% currently used, to power ocean-going vessels will be required for ships without exhaust scrubbers on Jan.
Marine Fuel Rules to Disrupt Markets for 1-5 years
The marine industry's January 2020 shift to using very low sulfur fuel oil (VLSFO) to power ships worldwide will launch a one- to five-year disruption in oil and refined products markets, according to a study released Thursday by Boston Consulting Group.The International Maritime Organization (IMO)'s mandated switch will require fuels to have a sulfur content below 0.5%, compared with 3.5% now. It aims to improve human health by reducing air pollution from sea-going vessels.The changeover may increase profits for refiners, especially on the U.S.
Containershipping: Restoring Balance
The repositioning of empty containers costs the liner industry an estimated $15-20billion every year according to Boston Consulting Group (BCG), as containers sit idle at a depot or are repositioned to a different loading point while empty. This is time spent not earning revenue, whil incurring additional costs, and is estimated by BCG to account for 5-8% of total operating costs for an average container liner. These expenses can include inland repositioning by rail or road onto a different port or terminal…
GC Rieber Shipping Taps Ytredal as CEO
Norwegian offshore shipping company GC Rieber Shipping announced acting chief executive officer Einar Ytredal has appointed to the CEO role on a permanent basis. At the same time, Øystein Kvåle was named new chief financial officer (CFO) and Christoffer Knudsen was promoted to chief commercial officer (CCO).Ytredal was appointed acting CEO in mid-September 2018. He has been with the company since 2007, first as vice president finance and then as CFO since September 2011. Before joining GC Rieber Shipping, Ytredal worked at Deloitte.
UK Shipping Tech to be Worth USD 16.5 bln by 2030
UK shipping technology sector will grow to become a GBP 12.8 billion (USD 16.5 bln ) market by 2030 from the current level of GBP 3.7 billion, revealed a study.A new report commissioned by UK venture fund and think-tank PUBLIC estimated the growth will be fuelled largely by digitalisation of the industry, with technologies such as big data, blockchain, and artificial intelligence creating a new market for digitally enabled maritime services.For the purposes of this report, shipping…
Blockchain Benefits Still Murky for Most Commodities Trading
Commodity firms and banks have been diving into blockchain pilot schemes over the last two years but the new technology's application for most trading has likely been over-hyped, a report by Boston Consulting Group (BCG) said.Blockchain, originally the platform behind cryptocurrency Bitcoin, is viewed by some as a solution to inefficiencies, improving transparency and reducing to the risk of fraud. But BCG believes its potential has been exaggerated.A high-tech ledger, blockchain…
Digital Marine Solutions Names Østergaard Executive Chairman
Digital Marine Solutions AS (DMS), the parent company of C-Map, has appointed Paul Østergaard as executive chairman. Together with the DMS board of directors and the C-Map leadership team, Østergaard will develop and implement the company’s strategic plan and lead the company in achieving its growth targets for 2017 and beyond. Østergaard began his career as an officer with the Danish Royal Guards and then spent five years with ship-owner J. Lauritzen in commercial and operational roles in Denmark and Brazil.
Vivek Bhatia New CEO of Thyssenkrupp AsiaPac
Vivek Bhatia (38) will become the new CEO of thyssenkrupp Asia Pacific effective October 1, 2016. He succeeds Dr. Stefan Schmitt (40), who will move to thyssenkrupp AG as Head of Human Resources Strategy effective October 1. Vivek Bhatia has been Head of Strategy, Markets and Development at the Regional Headquarters in Singapore since May 2014, prior to which, as part of the Boston Consulting Group for several years, he advised industrial businesses on their strategy and operations, in markets across the world and as part of Engineers India Ltd.
Greek Shipers Disagree with EC on Tax Issues
The European Commission recently published Decision (C(2015)9019 final / 18-12-2015) alleging that some provisions of the Greek shipping taxation regime are in breach of EU state aid provisions and, in particular, the conditions set out in the current Community Guidelines on State Aid to Maritime Transport (SAG). In response, the Union of Greek Shipowners issued a statement expressing its disagreement with the decision. “As the official representative of the Greek shipping sector, the Union of Greek Shipowners (UGS) has the duty to point out that there is no effective distortion of competition in the maritime field in the EU and that any fundamental changes to the institutional and fiscal framework in which the Greek shipping community is presently operating…
Shipping Corporation Net Profit Jumps Over Three-Fold
State-run Shipping Corporation of India (SCI) Ltd has reported more than three times rise in net profit for the quarter ended 30 June on account of higher earnings from running oil tankers and lower bunker (ship fuel) prices. Its June-quarter net profit is 1.64 billion rupees versus 494.9 million rupees year ago. Its June-quarter income from operations is 10.46billion rupees versus 10.58 billion rupees last year. The company’s board, which met in Mumbai on Wednesday, approved…
Panama Canal Expansion Could Shift US Container Traffic
Following the Panama Canal expansion in 2016, up to 10 percent of container traffic to the U.S. from East Asia could shift from West Coast ports to East Coast ports by 2020, according to new research conducted by The Boston Consulting Group (BCG) and C.H. Robinson. Rerouting that volume is equivalent to building a port roughly double the size of the ports in Savannah and Charleston. The research -- which involved extensive scenario analyses based on differing levels of demand…
Emission Control to Cost Additional $100 bln for Shipping Lines
The implementation of a global sulfur cap slated for 2020 is estimated to add an additional $50-100 billion to the shipping industry's annual fuel bills, Lloyd's List reports. The spread between heavy fuel oil (HFO) and Emission Control Area (ECA) compliant marine gas oil (MGO) is expected to remain in the range of $250 and $400 per tonne, regardless of different price fluctuations, says Niels Bjorn Mortensen, head of regulatory affairs, Maersk Maritime Technology. The estimate…
Urgent Need to Cut Costs in UK North Sea
Britain's North Sea oil and gas industry faces a bleak future where more fields are likely to become uneconomic and shut in as platforms close - unless costs can be controlled, operators say. For some elderly platforms in the Northern North Sea, time is running out. If the industry does not get to grips with costs quickly, fresh investment is likely to dry up, forcing unsaleable rusting rigs to be abandoned. "From a cost point of view, the chickens are coming home to roost," said Tim Walsh, senior vice president, asset integrity services at Lloyd's Register Energy.
New L.A. Harbor Commissioners Hold First Meeting
The newly assembled Los Angeles Board of Harbor Commissioners held its first meeting, with four of the five-member panel newly appointed by Los Angeles Mayor Eric Garcetti. Three of the commissioners are Harbor Area residents. The Harbor Commission is expected to elect its president and vice-president at the next Board meeting on December 12 th. “Spurring investment and creating job opportunities at our nation’s No. 1 Port is critical to Los Angeles and the entire country,” said Mayor Garcetti.
Container Ships Must Alter Course for Profitabality Says Report
Container carriers can recover from the losses they suffered in recent price wars by adopting more disciplined business practices, says a new report. The recently published report by The Boston Consulting Group (BCG) is titled 'Charting a New Course: Restoring Profitability to Container Shipping'. It finds that the container-shipping industry’s poor performance in 2011 and its continued struggles in 2012 are primarily the result of a self-inflicted supply-and-demand imbalance, which triggered intense competition and price wars. The report goes on to explain how the industry is harming its own economics by following misguided practices—especially those affecting capacity and pricing decisions.
China’s Growth Could Boost Shipping
China’s shift towards a domestic consumer demand-oriented economy could provide a significant boost to the global shipping industry, as the world’s second largest economy targets more sustainable growth. “2013 will be another peak year of new vessel deliveries. Oversupply of capacity is still an obstacle for the shipping industry to overcome, but with the improvement of the world economy, the shipping sector is expected to experience moderate growth,” said Mr Xu Lirong, President of China Shipping (Group) Company. Mr Xu will examine this key issue affecting China, and the nation’s pivotal position in the international maritime arena, in a conference summit at Sea Asia, the region’s leading maritime event, in Singapore next April.