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Tuesday, October 27, 2020

Bunker News

Costa Smeralda loads LNG fuel from the bunkering vessel Coral Methane in the port of La Spezia. (Photo: Costa Cruises)

Costa Cruises Completes Italy's First LNG Bunkering

Carnival Corporation's Costa Cruises brand said its liquefied natural gas (LNG)-powered flagship Costa Smeralda has become he first vessel to bunker LNG in Italy.Carried out in the port of La Spezia and completed at 6 p.m. on Sunday, the operation was supported by the Italian Coast Guard, Port Authority of Eastern Ligurian Sea, local authorities and Shell, which is the LNG supplier partner for Costa Group and its parent company, Carnival Corporation.The operation took place with the ship berthed at Molo Garibaldi pier…

(Photo: Hapag-Lloyd)

Hapag-Lloyd Sees Shipping Demand Recovering

German container shipping firm Hapag-Lloyd is benefitting from a rebound in transport demand but its chief executive warned about the longer-term impact on economic activity from the coronavirus."We see a recovery, which started probably some time in the course of third quarter, and we would expect that to continue going into 2021," chief executive Rolf Habben Jansen said in an embargoed briefing session with journalists held on Thursday."But there will be a clear long-term effect on the global economy from COVID-19…

© Igor Groshev / Adobe Stock

Singapore Ramping Up LNG Bunkering Capacity

Singapore’s annual liquefied natural gas (LNG) bunkering capacity is expected to hit 1 million tonnes by 2021, as the world’s largest marine refueling hub transitions toward cleaner shipping fuels, a senior minister of state said on Tuesday.The push is part of the International Maritime Organization’s (IMO) aim to halve the sector’s greenhouse gas emissions by 2050 from 2008 levels.“As the maritime community continues the search for low or zero carbon fuels to meet the IMO’s 2050 goal, LNG is a viable transitional fuel to mitigate CO2 (carbon dioxide) emissions from ships,” said Chee Hong Tat,

CMA CGM Tenere (Photo: Eastern Pacific Shipping)

World's First LNG-powered Very Large Containership Delivered

Hyundai Samho Heavy Industries has delivered the world's first very large containership powered by liquefied natural gas (LNG) to Singapore's Eastern Pacific Shipping (EPS), the South Korean shipbuilder announced Wednesday.The LNG-powered, 14,800 twenty-foot equivalent unit (TEU) capacity CMA CGM Tenere is one of six containerships in a series being built for EPS by Hyundai Samho, a unit of shipbuilding giant Korea Shipbuilding & Offshore Engineering Co. The six neo-Panamax box…

© eyewave/AdobeStock

Container Shipping & Perfecting on-time Performance

Recent reports show that on-time performance in the containership sector continues to deteriorate, causing tension between the carriers and retailers. In general, non-ocean carriers – trucks and trains – are achieving reliability rates well above 90% whereas containerships rarely beat a 70% on-time threshold. For retailers, the threat of having empty shelves is beginning to swing the balance from cheaper ocean transport to a need for reliable just-in-time deliveries supplied by…

Shipping's Switch to Cleaner Fuel Has Been Smooth Sailing -ING Bank

Seven months after the United Nations' shipping agency brought in hotly anticipated new rules to curb emissions, the raft of technical issues and leap in fuel prices that were expected to result have failed to materialize, ING Bank said on Tuesday.Global shipping and oil firms had flagged major concerns over potential disruptions from International Maritime Organization (IMO) rules implemented at the start of 2020, which capped marine fuels' sulphur content at 0.5% against 3.5% previously.However, shipping and marine fuel suppliers say expected technical issues, such as damage to engines from

SwiftBulk Opts for Fuel Monitoring Solution on Kamsarmax Thestelia K

Shipping company SwiftBulk Holding Co. Ltd, a subsidiary of Tiptree Inc., has partnered with FUELTRAX to install EFMS (Electronic Fuel Monitoring System) and FUELTRAX Vision on its 2009-built Kamsarmax dry bulk carrier vessel the Thestelia K (82,000 dwt).SwiftBulk is implementing FUELTRAX EFMS to improve operating efficiency, decrease environmental footprint with consumption tracking and improve operating transparency. The EFMS on board includes direct fuel measurements via Coriolis…

Inchcape Shipping Services CEO Frank Olsen  (Photo: ISS)

Frank About the Future

Inchcape Shipping Services (ISS) CEO Frank Olsen opens up on the challenges of COVID-19, the benefits of a global network, and a fundamental shift in the established ships agency marketplace. Change, he says, is coming.“I haven’t spent this much time in Norway, without international travel, since I was at school,” laughs ISS CEO Frank Olsen over a call on Microsoft Teams.With a career that’s taken in seven years at sea, mostly on RoRos with Wallenius Wilhelmsen, living in Costa Rica (where he briefly captained a dive vessel)…

Anders Gronborg (Photo: Trafigura)

New TFG Marine CEO to Leave in September

The new chief executive of Trafigura's marine fuels joint venture TFG Marine will leave the business at the end of September, the company said on Monday without disclosing the reason for his departure.Anders Gronborg was appointed CEO in April after ending a 27-year career at World Fuel Services in 2018.The company and Gronborg have agreed to part in a "mutually agreed exit", a company spokeswoman said in an emailed statement, adding that his last day will be Sept. 30."The Board…

© masterskuz55 / Adobe Stock

China to Be Self-reliant in IMO-compliant Fuel

Chinese refiners have the capacity to produce 18.1 million tonnes of low-sulphur fuel oil (LSFO) this year, which would make the country self-sufficient in the new shipping fuel, an official with state major PetroChina said on Monday.China has been striving to reduce its reliance on bunker fuel imports and is aiming to create its own marine fuel hub to supply northern Asia.About 20 refineries, mostly under state-run Sinopec Corp, PetroChina, CNOOC and Sinochem, installed equipment to produce 0.5% sulfur fuel that meets International Maritime Organization (IMO) rules that came into force at the

© Pavel Losevsky / Adobe Stock

Bunkering at UAE's Fujairah Plummets in May

Ship fuelling activity in Fujairah in the United Arab Emirates, a bunkering and fuel storage hub in the Middle East, fell in May as declining demand was made worse by slowing global trade because of the coronavirus pandemic, four trade sources said.Fujairah's ship refueling, or bunkering, volumes shrank to about 200,000-300,000 tonnes in May, down from average volumes of about 700,000-800,000 tonnes, said the sources with knowledge of the regional trade who declined to be identified."It's all things COVID…

© Igor Yu. Groshev / Adobe Stock

Suez Canal Ship Transits Rise Amid COVID-19

Transits through the Suez Canal, the beating heart of the Egyptian economy, have stayed remarkably resilient to the fallout of the COVID-19 pandemic if judging by total transits of the three commercial shipping sectors which are up 8% year-on-year. This is despite bleak economic growth prospects world-wide following the pandemic, and highlights that shipping remains the backbone of the global economy.It is often said that a picture says more than 1,000 words, but 6,166 ship transits in the Suez Canal can certainly also tell an interesting tale.

Nina Østergaard Borris, Mia Østergaard Nielsen and Torben Østergaard-Nielsen (Photo: USTC)

The Next Generation Takes Ownership in USTC

First financial steps have been made to cement the planned succession process of Torben Østergaard-Nielsen’s global shipping group United Shipping & Trading Company (USTC), based in Middelfart, Denmark.The next generation in the family-owned business, daughters Nina Østergaard Borris and Mia Østergaard Nielsen, have become co-owners via the parent company Selfinvest. In the future, they will take even greater part in the active ownership of the group.With more than 2,500 employees distributed on 101 offices in 33 countries worldwide…

© James Steidl / Adobe Stock

China's VLSFO Exports Rose By a Third in April

China's low-sulphur marine fuel exports rose by a third in April compared with March to the highest level yet after it waived export taxes for domestic refiners to meet shipping demand, Chinese customs data showed.Chinese refiners began exporting in January very low sulphur fuel oi (VLSFO) with a maximum sulphur content of 0.5% to comply with emission rules for ships from the International Maritime Organization.Data from China's General Administration of Customs showed April exports of the ship fuel reached nearly 1.43 million tonnes…

Photo credit Wallenius Wilhelmsen

Tech Talk: Wallenius Wilhelmsen Puts Hull Grooming to the Test

Even as shipowners enjoy record low bunker fuel pricing, the search for hull cleaning and fuel-saving optimization continues. Jotun, which recently launched 'hull skater' hull grooming, found a willing partner in Wallenius Wilhelmsen -- an operator of a fleet of 126 RoRo vessels, 11 marine terminals and 71 processing centers globally -- to put the hull skater to the test.For the past decade, Wallenius Wilhelmsen has produced an annual Sustainability Report, describing initiatives undertaken to reduce the company’s emissions and safeguard life below the water line, among other target areas.

(Photo: Hapag-Lloyd)

Hapag-Lloyd Keeps 2020 Guidance

German container liner Hapag-Lloyd on Friday stuck with its full-year earnings guidance but warned that supply disruptions and weaker demand due to the coronavirus crisis may lead to a revision of its forecast in the second half of 2020.The number five in worldwide container shipping, Hapag-Lloyd reported lower core profits in the first quarter on higher fuel costs and a devaluation of bunker stocks at the end of the period, when oil prices began to fall in a demand slump.The developments masked a positive impact from higher transport volumes - which increased by 4.3% to over 3 million 20-foot

Source: BIMCO

BIMCO: 2020 and the Collapse of Bunker Fuel Markets

The sulfur regulation from the International Maritime Organization (IMO) that came into force on 1 January 2020 took the center stage in the shipping industry at outset of the new decade. Four months on, the spotlights have turned to the coronavirus and the OPEC+ oil price war.The outlook for global economic growth remains bleak as the world is faced with the largest recession since the Great Depression in the 1930s.Commodity prices have declined across the board and most recently…

(Photo: Lindsay‐Blee)

Lindsay‐Blee, Master Fuel Partner in Colombia

Marine fuel company Lindsay‐Blee said Wednesday it has entered into an exclusive marketing and distribution agreement with Master Fuel SAS of Cartagena, Colombia.Effective immediately, under the agreement Lindsay‐Blee will manage the sales and marketing of marine fuel products produced by Master Fuel for the Colombian market, including VLSFO (0.50% sulphur max,) HSFO 380 cst, and MGO LS (Max sulphur 0.10%.) All products will conform to ISO standards and are composed from lower‐sulphur straight‐run fuels.

© masterskuz55 / Adobe Stock

China to Issue VLSFO Quotas in Move to Grow Bunker Market Share

China is set to release its first-ever quotas to export very low sulphur fuel oil (VLSFO) with total volumes of 10 million tonnes for this year, six industry officials with knowledge of the matter said on Tuesday.The quotas, which came in the wake of Beijing’s policy in January to offer tax sweeteners to boost local production of the fuel, paves the way for Chinese refiners to almost fully cover the demand from its coastal bonded marine fuel market of 12-14 million tonnes annually.The quotas will be issued to four state-run firms - Sinopec Group, CNPC, China National Offshore Oil Company (CNOO

MPA Awards Two Bunker Licenses

The Maritime and Port Authority of Singapore (MPA) has awarded two new bunker supplier licences to Minerva Bunkering and TFG Marine, following its call for applications for new licences in December 2019.Bunkering services in the Port of Singapore and oil trading remain resilient despite the global COVID-19 pandemic. Bunker sales in Singapore grew 5.4%, from 12.07 million tonnes in the first quarter of 2019 to 12.72 million tonnes in the first quarter of 2020.MPA and Enterprise Singapore (ESG) welcome the entry of Minerva Bunkering and TFG Marine…

© Oliver Hoffmann / Adobe Stock

COVID-19 Cuts a Swath Through Containership Charter Earnings -MSI

While the implications of COVID-19 for containership demand and freight rates are directionally clear, the time charter market often marches to its own drum.The latest Container Shipping Forecaster from Maritime Strategies International analyzes the impact of the pandemic on time charter markets in the light of reduced demand and falling fright rates.Containership time charter rates have broadly retreated in recent weeks, and since the start of 2020 the majority of benchmarks have seen earnings retreat by 10-15% - hardly a historic correction.

MAN Energy Solutions has been comissioned to develope and construct a liquefied methane terminal in the port of Oxelösund, Sweden  (Photo: MAN Energy Solutions)

MAN Cryo Develops Liquefied Methane Terminal in Swedish Port

OxGas, a company fully owned by the Port of Oxelösund in Sweden has commissioned MAN Energy Solutions to act as “owners engineer” in the development and construction of a multi-functional terminal for liquefied methane based fuels in the port of Oxelösund. The terminal will be designed to feed both liquefied natural gas (LNG) and green methane derived from bio gas to SSAB ’s steel production in Oxelösund, and to re-distribute it via train and trailers to other parts of Sweden.The…

© beketoff / Adobe Stock

UAE Bans Ship Over Fuel Breach

The world's number two container line MSC is in talks with the United Arab Emirates after the Gulf country banned one of their vessels from entering its waters over what authorities said was a breach of tough new sulphur emissions rules for ships.This is one of the first punitive actions taken by a jurisdiction since regulations came into effect in January which make it mandatory for ships to use fuel with a sulphur content of 0.5%, down from 3.5% previously, or install devices that strip out the toxic pollutant - known as scrubbers.Ships were no longer able to even carry high sulphur fuel fro

© Rex Wholster / Adobe Stock

Most Bunker Sales in Singapore are Low-sulphur Fuels -BIMCO

Low-sulphur fuels accounted for 84% of total February sales in Singapore, slightly up from 83% in January. The sale of low-sulphur fuel oil (LSFO) made up the largest component at 71.5%, with marine gas oil (MGO) accounting for 12.5%, BIMCO reports.Total bunker sales in February fell 16% to 3.9 million metric tons compared with January, reflecting lower demand for shipping as the coronavirus paralyzed intra-Asian supply chains.Now that both the sulphur cap and the non-compliant fuel oil carriage ban have come into force…

© aerial-drone / Adobe Stock

China's Bunker Fuel Demand Plummets

China's marine fuels sales fell by as much as 50% in February as the rapidly spreading coronavirus and prolonged Lunar New Year break strangled freight movement in and out of the global manufacturing powerhouse, trade sources said.The epidemic, which has killed almost 3,000 people and infected about 80,000 in China alone, triggered the sharpest contraction on record for Chinese factory activity in February and caused massive port congestion because of labor shortages.The resulting plunge in freight demand has knocked 40% off Asian prices for very low-sulphur fuel oil (VLSFO) since early Januar

© Darryl Brooks / Adobe Stock

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)