Maersk to Raise HSFO Bunker Fuel Consumption to 25%
Danish shipping group A.P. Moller-Maersk plans to raise the proportion of high sulphur fuel oil it consumes from 10% to 25% by the year-end, CEO Soren Skou says.The world's largest container shipping firm consumed a total of around 11.80 million tonnes of shipping fuel last year.Maersk's current shipping fuel use comprises of around 10% ultra low sulphur (0.1%) fuel oil, 10% high sulphur fuel oil and the remaining 80% is low sulphur fuel oil. (Reporting Stine Jacobsen and Shadia Nasralla. Writing by Ahmad Ghaddar; editing by David Evans)
Low-sulphur Fuel Oil Prices Drop
Prices for very low sulphur fuel oil (VLSFO) in ports around the world have fallen within the first month since the International Maritime Organization's (IMO) new regulation for a 0.50% global sulphur cap for marine fuels has taken effect.Singapore has seen one of the largest drops in the price of VLSFO, which peaked on January 7, 2020 at $740 per metric ton (MT) and dropped $99 to $641 per MT on January 22, BIMCO points out.Prices rose in December as shipowners transitioned…
Low-sulphur Fuel Sales Surge
The final quarter of 2019 marked a massive decline of high-sulphur fuel oil (HSFO) sales, as the industry transitioned into compliance of the International Maritime Organization's (IMO) 2020 Sulphur Cap (IMO 2020). In Singapore, the world’s largest bunkering hub, the bunker sale landscape saw significant change as the sale of high-sulphur fuel oil dropped tremendously in a matter of months. In contrast, the sale of low-sulphur fuels skyrocketed in the final quarter.The first wave…
Tankers Running on Fumes as Shipping Fuel Switch Causes Delays
Disruption to shipping from the long-anticipated switch to more environmentally friendly marine fuels has finally arrived, exacerbated by logistical problems as much as any shortage of the cleaner fuel.New International Maritime Organization (IMO) rules, referred to as IMO 2020, aim to stop ships from using fuels containing more than 0.5% sulphur unless they are equipped with exhaust-cleaning systems known as scrubbers.From the start of January ships must load very low sulphur…
Asian Refiners Strive to Finish IMO Preparations
At SK Energy's largest refinery in South Korea, engineers are rushing to complete a new processing unit ahead of schedule as the firm looks to boost sales of low-emission fuels before new marine fuel standards take effect in just one month.In Japan, the country's second-biggest refiner Idemitsu Kosan Co is taking a more cautious stance, increasing capacity for low sulphur fuel oil (LSFO), but also relying on blending to produce IMO 2020 compliant bunker fuel.The different approaches…
Fuel Market Calm ahead of IMO Changeover
Fears about a shortage of diesel and other middle distillates stemming from new marine pollution regulations have receded, with distillate premiums falling to some of the lowest levels for two years.From the start of 2020, ocean-going ships will be required to use low-sulphur fuels or employ exhaust gas cleaning systems, known has scrubbers, under pollution control rules approved by the International Maritime Organization (IMO).Fuel traders and shipowners have warned for several…
IMO 2020, China Output Pummels Asian Refinery Margins
Profits at Asian refineries are being buffeted by a combination of factors, chief among them uncertainty over how exactly new shipping fuel standards will play out and the rise of China as a product exporter.Refinery margins in Asia have been knocked to the lowest since the financial crisis in 2008 by some measures, as the industry grapples with the disparate factors.The return from processing a barrel of Dubai crude at a typical Singapore refinery was a loss of $1.19 a barrel in early Asian trade on Monday.
IMO2020: Market Uncertainty Brings More Fuel Oil Price Volatility
The oil market has recently been shaken up by geopolitical events, but volatility in the price difference between low and high sulphur fuel cannot be explained by that alone – the uncertainty is the chaos factor.The uncertainty of the upcoming IMO 2020 Sulphur cap regulation (IMO2020) is having a big impact on the bunker market. Whereas, the price for Marine Gas Oil Low Sulphur (MGO LS) has largely remained stable, the price for High Sulphur Fuel oil (HSFO) has been become increasingly more volatile in recent months.
U.S. Scoops up Overseas Fuel Oil in pre-IMO Push
The United States is taking advantage of record-low prices of one of the world's dirtiest fuels by buying record volumes, which it intends to upgrade into cleaner products before new shipping rules take effect, trading and analyst sources say.U.S. trade sources said it recently had become economical to ship fuel oil from countries such as Russia, boosting imports of the product into the United States.This comes even as prices for high-sulphur fuel oil (HSFO) on the U.S. Gulf Coast…
Fuel Spread for 32 Ports on BIMCO Website
BIMCO members can now monitor the price spread between Marine Gas Oil Low Sulphur and 380 centistoke High Sulphur Fuel Oil in 32 different ports around the world with daily information supplied by MABUX.The service is intended to assist members in making bunkering decisions before and after January 1, 2020.“We have seen significant fluctuations in the market over the past couple of months – fluctuations that can only be explained by the massive uncertainty about the future. It is currently not operating by market fundamentals.
Viva Energy Fuels the Future of Shipping
Viva Energy Australia announced the launch of its new very low sulphur fuel oil (VLSFO), developed to meet the International Maritime Organization’s (IMO) new regulations on fuel sulphur content.The new regulations will limit the sulphur content in marine fuels to 0.5% from the current level of 3.5%, in a move to reduce sulphur oxide emissions globally. Vessels worldwide will be required to comply by January 1, 2020.The introduction of the IMO’s new sulphur cap on fuels is one…
U.S. Shipping Sanctions Dent HSFO Demand
U.S. sanctions on a top Chinese shipping fleet is set to produce a totally unintended result -- less burning of the dirtiest marine fuels at sea at the start of next year, Refinitiv data showed on Tuesday.The move to blacklist ships from COSCO on Sept. 24 for allegedly ferrying sanctioned Iranian oil will undercut demand for ships' traditional means of power because a vessel crunch meant fewer docked and attached kit to filter the dirtier fuels.From January 2020, the United Nations International Maritime Organization (IMO) will ban ships from using fuel with a sulphur content above 0.5%…
ExxonMobil Talks With Teekay Ahead of IMO 2020
The International Maritime Organization (IMO) has mandated a global 0.50% cap on the maximum level of sulphur in marine fuel. This new cap represents a significant reduction – down from the current 3.50% limit – and presents the marine industry with compliance challenges.Starting from January 1, 2020, vessel operators will need to use a compliant fuel, or have a scrubber fitted if they wish to continue burning high-sulphur fuel oil. This ruling does not affect Emission Control Areas (ECAs), where a 0.10% sulphur fuel is still required.ExxonMobil anticipates that the vast majority of the industry will choose a low-sulphur fuel to meet the new IMO 2020 cap. However, there is no single route to compliance.
Oil Stockpiling Builds Ahead of IMO 2020 Rules
S-Oil, South Korea's third-largest refiner, said on Wednesday that regional refining margins are expected to improve in the fourth quarter on the back of inventory build-up ahead of implementation of stricter rules on marine fuels in 2020.The refiner, whose top shareholder is Saudi Aramco, said in an earnings statement, strong demand for heating oil was also expected to support refining margins, along with the International Maritime Organization (IMO)'s stricter shipping fuel…
U.S. Shipping Sanctions Give Boost to EU Refiners
U.S. sanctions imposed last month on subsidiaries of vast Chinese shipping fleet Cosco have given an unexpected boost to European refiners as less crude oil from the North Sea and West Africa heads east, traders and analysts said.Freight rates have soared as oil producers scramble for non-blacklisted vessels, discouraging longer-distance voyages.Complex refining margins for advanced facilities capable of extracting even more valuable products like diesel and gasoline, have been especially strong in Europe, industry sources said.The U.S.
BIMCO Offers Bunker Fuel Price Monitoring
BIMCO has developed a monitoring service for bunker prices, with data provided by MABUX, which is now available to all BIMCO members. The new interactive graphs allow price fluctuations in the major bunkering hubs of Singapore and Rotterdam to be tracked. They will show the bunker prices for 380cST HSFO (high sulphur fuel oil) and MGO LS (marine gas oil low sulfur), both in USD per metric ton, as well as the spread between the two fuel types, with data available since June 2017.
Shipping Confidence Dips as Trade War Worries Weigh
Confidence in the shipping industry fell in the past three months to its lowest level for two and half years, according to the latest Shipping Confidence Survey from leading shipping adviser and accountant BDO. Yet owners, charterers and managers were more confident than they were at the time of the previous survey in May 2019.The average confidence level recorded by the survey in the three months to end-August 2019 was 5.8 out of a possible maximum of 10.0. This compares to the…
New Ship Emission Regs: Dirty Fuel Down but Not Out
Asia's spot premium for 380-centistoke (cst) high-sulphur fuel oil (HSFO) is expected to ease gradually from its recent record highs as shippers adopt cleaner marine fuels next year to meet new, tougher rules on emissions from ships.But as the deadline approaches, analysts and traders agree that demand for the dirtier HSFO will not die out completely as an increasing number of ships get equipped with sulphur-cleaning devices in the coming years to combat pollution.Starting Jan.
McQuilling Mid-Year Tanker Market Outlook
McQuilling Services Announces the Release of the 2019 Mid-Year Tanker Market Outlook Update.The Mid-Year Tanker Market Outlook Update provides an outlook on the global tanker market in the context of global economic growth and oil fundamentals influencing tanker demand and vessel supply. The outlook includes a view on future asset values, time charter rates, market freight rates and TCE revenues for 24 major tanker trades and four triangulated routes across eight vessel segments for the second half of 2019 through the remaining four years of the forecast period 2019-2023.
Singapore's Ocean Tankers tests IMO-2020 Compliant Fuel
Off the coast of Singapore, the world's largest ship refuelling centre, a bunker barge sidled next to the supertanker Pu Tuo San to fill the giant vessel with a new type of fuel that will meet global standards that start up in January.With a little over five months left until stricter marine fuel rules come into effect, shippers such as Singapore's Ocean Tankers that own the very large crude carrier (VLCC) Pu Tuo San have started testing out lower sulphur fuel to prepare their…
Singapore Fuel Stocks at Eight-month Low Ahead of IMO 2020 Deadline
Oil product inventories in the Singapore storage and trading hub fell to an eight-month low in the week ended July 17, official data showed, in one of the latest signs that suppliers are gearing up for rule changes to make marine fuel cleaner.Singapore onshore stocks of petroleum products, which include gasoline, diesel, jet fuel and residual fuel oil, came in at 38.372 million barrels, down from 41.725 million barrels in the previous week and their lowest since the week ended Nov.
War Risk Costs Impact UAE Bunkers, Singapore benefits
Shippers trying to minimise time in the Middle East after oil tanker attacks pushed up insurance costs are scaling back purchases of marine fuels from the United Arab Emirates' (UAE) Fujairah oil hub, trade sources said.Instead, they are turning primarily to Singapore, the world's top refuelling hub, to buy marine fuels, also known as bunkers, with some diverting to smaller bunkering ports, including in India and Sri Lanka, the sources said.A tonne of 380-centistoke (cst) high…
V.Group: Proactive Approach to 2020 Needed
V.Group has urged shipowners and operators to take a proactive approach to 2020 compliance. With the global sulphur cap less than nine months away, V.Group is seeing growing numbers of shipowners and operators developing Ship Implementation Plans (SIPs) to mitigate risks and minimize disruption.It is predicted that most ships will burn ultra low sulphur fuel oils (ULSFOs) to comply with the suplhur cap legislation, switching from high sulphur fuel oil (HFO) to ULSFOs with a sulphur content at, or below, 0.50%, unless equipped with scrubbers.