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Tuesday, January 23, 2018

Fuel Costs News

Minimizing the Transfer of Invasive Aquatic Species

Photo: UK P&I Club

Shipowners should take action to reduce the impact of invasive aquatic species (IAS) carried by hull biofouling. The UK P&I Club has published its top tips on how to reduce biofouling on board vessels to achieve greater efficiency and reduce environmental risk. According to Madlene Wangrau, UK P&I biofouling  is the undeseriable accumulation of various aquatic organisms on submerged structures. “Biofouling is undesirable accumulation of various aquatic organisms (microorganisms, plants, algae and animals) on submerged structures like ships’ hulls.

Carnival 2Q Reflects Fuel Costs

According to reports, higher fuel costs and the Caribbean cruise market combined to reduce second-quarter profit 2 percent at Carnival Corp. Net income for the quarter ended May 31 was $380 million, or 46 cents per share, compared with last year's second-quarter profit of $388 million, or 47 cents per share. Wall Street analysts surveyed by Thomson Financial had forecast profit of 44 cents a share, on average. While revenue rose 6 percent to $2.66 billion compared with the same period last year, executives at the Miami-based company said fuel costs were about 43 percent higher. Those high fuel prices are expected to continue through the rest of the year. Source: AP

Shipping’s Clean Technology Sector Revealed

LONDON: April 7th: Over 130 companies are currently providing over sixty emission-reduction “clean” technologies to the international shipping industry, according to ‘The Guide’: the first comprehensive guide to ship efficiency and technology measures, launched today. ‘The Guide’, launched today by Fathom, a leading provider of market intelligence products and services for the marine and energy industries, and supported by BIMCO, the world’s largest private shipping organisation…

NOL Group: $254m 1Q Loss

Ng Yat Chung

NOL Group, the Singapore-based container shipping and logistics company, reported a first quarter 2012 net loss of 254 million compared to a net loss of $10 million in the same period last year. NOL said high fuel costs and low freight rates in container shipping affected first quarter 2012 performance. NOL said that in the first quarter of 2012 it achieved about $100 million of cost savings under its ongoing programme and it is on track to achieve $500 million worth of savings for 2012. The savings were primarily through reduced fuel consumption and improved operational costs.

Reduce Fuel Bills without Going to Drydock

Photo: Hydrex

Propeller buffing is a new technique that aims to keep propellers in optimum condition. The process is not conventional propeller polishing, but a service developed and delivered only by Hydrex. Routine propeller buffing can save 5% from the fuel bill, Hydrex said, adding that the service is very easy to schedule and carry out regularly. This offers extraordinary ROI in terms of instant fuel savings. Very low outlay for very high returns and an extremely rapid payback. Additionally, propeller boss cap fins (PBCF) from MOL can be installed by Hydrex divers anywhere, any time.

Improving Freight Rates May Help Shippers Cope With Fuel Costs

The shipping industry is in a better position to cope with soaring fuel prices because of growth in trade as Asia recovers economic crisis, analysts said. The price of bunker fuel, which typically makes up about five percent of a shippers' total operating costs, has over the past six months doubled to $140 per ton. The spoils from improved conditions have not been evenly shared within the industry, with tanker owners the worst hit. Three global-pacts among oil producers to cut output and shore up prices have had a negative effect on tanker owners who now face higher bunker costs and lower shipping volumes. However, experts said, fuel cost is only a major issue if freight rates are on a decreasing trend, but with rates on a recovery, the impact on shippers will be lessened.

Ecore: A Step Change in VLOC Design

DNV project manager Pål Wold with the Ecore concept ship.

Together with FKAB, TGE Marine, Cargotec and MAN Diesel & Turbo, DNV has participated in a joint industry project to develop Ecore, a Very Large Ore Carrier concept designed to lower fuel costs and improve loading efficiency. Based on existing technology, the Ecore concept represents a step change in VLOC design. Powered by two-stroke dual fuel ME-GI engines, this concept features a more ballast friendly hull shape, a large centre cargo hold layout and introduces a highly efficient self-loading system.

NOL Group Reports $478m Loss

NOL Group today reported a $478 mnet loss in 2011 following net earnings of $461m in 2010. The container shipping and logistics company said unsettled economic conditions, high fuel costs and lower freight rates impacted results. "Recent freight rates show signs of improvement. However the global economy remains uncertain. The container shipping industry continues to face high fuel costs and overcapacity. “The performance of container shipping is disappointing.” said Group CEO Ng Yat Chung. “Over-capacity and higher fuel costs have negatively affected the whole container shipping industry. NOL said 2011 revenue decreased 2% to US$9.2 billion. The Group reported a Core EBIT (Earnings Before Interest and Taxes) loss of US$377 million for the year.

Taking the Guesswork Out of Bunker Procurement

Inatech launches its Optimizer to add smart decision making for fuel purchasing to its cloud-based management solution for the entire fuel procurement process. The company explains that Optimizer helps ship operators take the guesswork out of their fuel purchasing decisions by providing real-time guidance on the three key factors of quantity, location and price strategy-how much fuel to buy for each ship in their fleet, the best port to bunker at and the right price strategy (spot versus contract). In ongoing proof of concept evaluations for large shipping companies, Inatech's Optimizer has been shown to deliver real-world fuel cost savings of up to five percent.

Matson Decreases Fuel Surcharge by One Percentage Point

As a result of recent declines in bunker fuel prices, Matson Navigation Company will lower its fuel surcharge in its Hawaii, Guam/CNMI and Micronesia services by one percentage point, from 19.75 percent to 18.75 percent, effective November 5, 2006. "Bunker fuel prices continue to decrease, allowing us to make this second consecutive reduction to our fuel surcharge," said Dave Hoppes, senior vice president, ocean services. We will continue to monitor fuel costs and adjust the fuel surcharge accordingly. While fuel prices remain volatile, we are hopeful this current trend will continue."

Improving Rates May Help Shippers Cope With Fuel Costs

Shipowners are now better placed to cope with soaring fuel prices because of growth in trade as Asia recovers from economic crisis, industry sources and analysts said. The price of bunker fuel, which typically makes up about five percent of a shipper's total operating costs, has - over the past six months - doubled to $140 per ton. The spoils from improved conditions have not been evenly shared within the industry, with tanker owners hit the worst. Three global-pacts among oil producers to cut output and shore up prices have had a negative impact on tanker owners who now face higher bunker costs and lower shipping volumes. The producers agreed to remove from world oil production about 5.1 million bpd of crude oil…

Alaska Marine Lines Reduces Fuel Surcharge

Photo: Alaska Marine Lines

Alaska Marine Lines, a marine transportation company providing barge service to and from Alaska and Hawaii, informs it has filed with the U.S. Surface Transportation Board to decrease the fuel surcharge from certain locations as a result of fluctuating fuel costs.   Effective September 6, the line’s fuel surcharge will be reduced from 29 percent to 28 percent on shipments to, from and within Central Alaska and Prince William Sound locations  

New Sulphur Rules Force Changes at Stena Line

The new sulphur directive for shipping traffic within the North European SECA area, which comes into force on January 1, 2015, is good for the environment but has a significant economic impact on Stena Line's business. The whole of the change program that begun in 2013, and which is to produce an earnings improvement of 1 billion SEK, is to a major part an effect of the new rules. The reduction from two vessels to one on the Trelleborg-Sassnitz route is a current example of these measures. Another example is that Stena Line is now being forced to increase freight prices as a direct result of increased fuel costs. "From an economic perspective, this is one of the largest negative political decisions since tax-free was discontinued.

Tankers Pressured By Low Rates, High Costs

Oil tankers are reportedly being squeezed by low freight rates and high fuel costs, and some older ships may be heading for the scrapyard. An OPEC cut in oil production combined with reduced demand and high bunker fuel prices makes it difficult for even older tankers with little financial commitment to break-even, according to a report by shipbrokers Simpson, Spence and Young.

Matson to Raise Fuel Surcharge for Hawaii, Guam and Micronesia Services

With fuel related costs reaching historical highs, Matson Navigation Company announced today that it is raising its fuel surcharge for its Hawaii service by 4.5 percentage points, from 33.75 to 38.25 percent, and its Guam/CNMI and Micronesia services by 6 percentage points, from 33.75 to 39.75 percent, both effective July 13, 2008. This is the first adjustment Matson has made to its fuel surcharge since April 6, 2008. While Matson has traditionally applied the same percentage fuel surcharge to all of its Pacific service, it is implementing a new program that recognizes that there are greater fuel requirements in serving the more geographically remote regions of Guam and .

Matson Raises Fuel Surcharge

Last week, due to dramatic increases in fuel prices, Matson Navigation Company, Inc. (Matson) announced that it is raising its fuel surcharge from 6.5 to 7.5 percent in its Hawaii and Guam services effective September 15, 2003. "As anyone who drives a car is well aware, fuel prices have been rising steadily in recent months," said Dave Hoppes, vice president, ocean services. "For transportation companies, the costs are especially significant. Matson burns approximately 1.9 million barrels of fuel annually. For every dollar increase per barrel of bunker fuel, Matson experiences an approximate $1.9 million increase in annual operating costs. We cannot continue to absorb these additional fuel-related operating costs.

Despite Price Drop, Bunker Costs Still Hamper Shipping

The cost of marine fuel continues to be a major headache for global shipping companies. Bunker fuel costs account for approximately 70 per cent of the total voyage expenditure for a vessel and ship operators prefer purchasing bunker fuel from ports where the cost is lower. Some operators prefer purchasing a major portion of the total fuel requirement for the voyage from a single port which offers bunker fuel at economical prices. However, this is not an industry-wide scenario as other operators may spread the total fuel purchase over numerous ports. Fuel utilised by shipping companies for fuelling their marine fleet is commonly referred to as bunker fuel. Currently, fuel oil is the most widely used bunker fuel.

Damen Debuts Quick Docking/Fuel Saving Package

Castillo de Catoria (Photo: Damen Shiprepair & Conversion)

Damen Shiprepair & Conversion has developed a new innovative product, the Quick Docking/Fuel Saving package. This offers owners a fast and low-cost additional docking with the sole aim of reducing fuel consumption in between the five-year statutory survey period. The first vessel booked under the new concept has docked at Damen Shiprepair Brest (France). It is the capesize bulker Castillo De Catoira operated by Spanish company Empresa Naviera Elcano. Damen expects to bring more of its vessels to its shiprepair yards.

Seaware Routing Version 5

Photo courtesy ÖRN Marketing AB

Seaware AB announced a new major upgrade for its Seaware Routing software, introducing cost-based ship route optimization. The Seaware Routing software is designed to facilitate on board weather presentation and ship route planning, and is delivered as part of weather routing solutions from Seaware partners. Seaware Routing version 5 has been developed with special attention to optimization of short sea passages. During this work, the code for route optimization and performance predictions has been further refined…

News: Poor Weather, Repairs Forces Kirby to Lower Expectations

"Very poor weather, major repairs to a lock on the Gulf Intracoastal Waterway and rapidly escalating fuel prices, not lower business levels, are the factors causing Kirby to revise its first quarter forecast," were a few reasons that Joe Pyne, Kirby Corporation's President CEO, cited for the company's lowering of its earnings guidance for the 2003 first quarter to $.26 to $.30 per share from previous guidance of $.36 to $.40 per share. Navigational delays due to fog along the Gulf Coast, both high and low water issues on the Mississippi River, and major repairs to a critical lock on the Gulf Intracoastal Waterway, have resulted in increased transit times. Navigational delays increase transit times, which reduce revenues and increase operating expenses.

Energy Efficient Ships Addressed by GL

and operating ships efficiently. An efficient ship is profitable and environmentally compatible. efficiency. engages in the research and development of ship efficiency. Middle East / Africa. dominate ship operation. index which is a tool to determine the fuel consumption. added Schramm. transparent with the data associated to each vessel and voyage segment. can actively further minimize emissions. transport more cargo and improve their index even further. MEPC/Circ.471. ships. survey status of their GL classed fleet. cargo. eventually be used to minimise emissions from transport. the shipping industry. Scandinavia.

Emerson, Rederi AB Develop Flowmeters for Fuel Efficiency

Following a joint program by Rederi AB Transatlantic, Transas AB, and Emerson Process Management to develop an onboard solution for better control of marine fuel consumption, Rederi AB Transatlantic has installed Emerson’s Micro Motion Coriolis mass flowmeters on several ships in its fleet. The standard solution uses a compact Micro Motion F100-Series Coriolis sensor with a Model 1700 transmitter to provide highly accurate, traceable and transparent mass-based measurement of fuel oil. Using the MODBUS communications protocol, the mass flowmeter sends data to a fuel efficiency control system supplied by Transas AB in Sweden. This system, also called a Conning unit, collects information from the flowmeter and other onboard systems to help the crew optimize the operation of the ship.

Damen Quick Docking/Fuel Saving Package

Damen Shiprepair & Conversion developed a new product, the Quick Docking/Fuel Saving package, offering owners a fast and low-cost additional docking with the sole aim of reducing fuel consumption in between the five-year statutory survey period. The first vessel booked under the new concept has docked at Damen Shiprepair Brest (France). It is the capesize bulker Castillo De Catoira operated by Spanish company Empresa Naviera Elcano. Damen expects to bring more of its vessels to its shiprepair yards.

Maritime Reporter Magazine Cover Dec 2017 - The Great Ships of 2017

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