28732 members and growing – the largest networking group in the maritime industry!

LoginJoin

Sunday, January 26, 2020

Fuel Oil News

© Henry / Adobe Stock

2019 Shipping Grows for Port of Green Bay

Port of Green Bay reports continued growth in 2019.The 2019 shipping totals were the highest since 2007 during a period that saw the highest tonnage in the past 30 years; 2006 saw 2.55 million tons shipped through the port. The common denominator during both periods of time is a robust economy. The recently-concluded shipping season saw 2,254,674 tons of cargo move through the Port, an 8% increase over the previous season.“It is interesting how the port has changed since the 2006 and 2007 shipping seasons that saw 2.32 million tons and 2.55 million tons moved…

© Igor Yu. Groshev / Adobe Stock

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…

© vladsv / Adobe Stock

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…

Copyright: Suriyapong/AdobeStock

China Tax Waiver for Cleaner Ship Fuel Exports

China has approved a long-awaited tax waiver on exports of cleaner ship fuel, paving the way for refiners to boost output, though Beijing may initially limit shipments to focus on growing its coastal marine fuel market, state refiner officials say.Ships globally have switched to lower sulphur fuels, or use emissions-removing devices, to comply with new rules imposed by the International Maritime Organization this year.China's State Council, or cabinet, gave the go-ahead to waive taxes on the 0.5% or very low sulphur fuel oil (VLSFO)…

Feel the Power of Methanol: These 49,000 dwt vessels are built with the second generation of MAN B&W ME-LGIM two stroke dual-fuel engines that can run on both methanol and conventional marine fuels. 
Photo: Methanex Corporation

IMO2020: Methanol Proves Promising

When the clock strikes midnight on December 31, 2019, the maritime world enters a bold new era of emission reduction. With its growing fleet of methanol fueled ship and more than 60,000 hours of operating experience under its belt, Waterfront Shipping Company has a five-year headstart.As a general rule, shipowners are remiss to share insights on their operations, lest their competitors catch wind and leverage the same technology and savings. The case of Waterfront Shipping Company Ltd.

AdobeStock / © Mikesjc

China Stocks up on VLSFO Ahead of IMO2020 Deadline

Chinese marine fuel suppliers have signed up short-term deals to buy very low-sulphur fuel oil from companies like oil major Shell, Germany's Uniper and U.S. commodities trader Freepoint ahead of a new standard on emissions for the global shipping industry that kicks in on Jan. 1.While China's state refiners have pledged to produce a combined 14 million tonnes of the fuel for 2020 that complies with the tighter rules set by the International Maritime Organization (IMO), Beijing…

Image: Port of Rotterdam

STS Loading Caustic Soda in Rotterdam

The new International Maritime Organisation (IMO) regulations aim to significantly reduce emissions of sulfur oxides, which are responsible for atmospheric acidification. This means that vessels may only use fuels with sulfur levels of up to 0.5 percent as of 1 January 2020.The current permitted level is 3.5 percent. However, another option is available. Shipping companies may continue to use heavy fuel oil if they install ‘scrubbers’ on their vessels to purify the exhaust gases with a wash treatment of water and soda."As the world’s largest bunker port…

© saiko3p / Adobe Stock

CMA CGM and Total to Develop LNG Ship Refueling in Marseille

Container shipping firm CMA CGM will use the French Mediterranean port of Marseille for refueling some of its planned gas-powered vessels, backed by a supply partnership with energy group Total.Total will supply liquefied natural gas (LNG) and a refueling barge to enable CMA CGM to refuel LNG-powered vessels at the Marseille-Fos hub starting in 2021, the companies said in a joint statement on Wednesday.The initiative covers five vessels with a capacity of 15,000 twenty-foot equivalent…

© vladsv / Adobe Stock

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…

AdobeStock / © 14KT Gold

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…

Photo: Sovcomflot

IMO SG Meets Sovcomflot

Sovcomflot, the Russian maritime shipping company specializing in petroleum and LNG shipping, said that its team has met Kitack Lim, Secretary-General of the International Maritime Organization (IMO).He was met by Sergey Frank, Chairman of the Board of Directors of Sovcomflot and Igor Tonkovidov, President and CEO of Sovcomflot, as well as Alexey Klyavin, President of the Russian Chamber of Shipping.One of the key issues on the IMO's agenda is mitigating the impact of global shipping on the environment.The Agency has adopted new…

Photo: Clean Shipping Alliance 2020

CSA Protests Malaysia's Scrubber Ban

Members of the Clean Shipping Alliance 2020 expressed disappointment in regard to Malaysia’s recently-announced decision to prohibit the use of open-loop scrubbers in its coastal waters. The Malaysia Shipping Notice states that ships calling to Malaysian Ports are advised to change over to compliant fuel oil or change over to closed-loop/hybrid systems before entering Malaysian waters and ports.“We are disappointed in this announcement,” said CSA 2020 Chairman Capt. Mike Kaczmarek.

Image: IMO

SQLearn, PAS Launch Sulfur Cap Course

SQLearn and Prevention at Sea (PAS) have launched the new innovative e-learning course “IMO 2020 Sulfur Cap”The Greek e-learning solutions provider said: "This is the one-time stop to learn everything that IMO requires to achieve compliance with the IMO 2020 Sulfur Cap Legislation."The e-learning course covers all the aspects of the IMO 2020 Sulfur Cap Regulations and gives you the deepest knowledge on the upcoming maritime changes defined by IMO and strictly implemented on January 1st…

© Igor Groshev / Adobe Stock

Malaysia Bans Open-loop Ship Scrubbers

Malaysia has prohibited the use of open-loop scrubbers by ships plying Malaysian waters, as Southeast Asia's third-largest economy joins the growing number of nations adopting new industry guidelines on reducing sea pollution.New regulations from the International Maritime Organisation (IMO) will require shippers to adopt more environmentally-friendly measures to manage their fleets, including reducing the sulphur content in fuels used in their vessels from Jan. 1 2020.In a notice issued to the shipping industry…

Ralf Nagel. Photo: German Shipowners’ Association

Germany Mulls Onshore Power in Seaports

German federal government took a step to make onshore power in seaports more attractive; this week the environment ministers of the federal and state governments will be meeting in Hamburg to discuss onshore power initiatives in Germany.Against this backdrop, the German Shipowners’ Association (Verband Deutscher Reeder, VDR) welcomes plans to provide ships with onshore power while on berth in German ports.“We are united in our goal to further improve the climate and the air quality in the ports…

Pic: Sinopec

Sinopec Builds 100 Barge VLSFO Fleet

Chinese energy giant China Petroleum & Chemical Corporation (Sinopec) is planning to build a fleet of 100 barges over the next three years as part of its mission to become a major regional supplier of the IMO 2020-compliant very low sulphur fuel oil (VLSFO).According to a report from Reuters, this would be one of the top Asian refiner’s biggest shipping investments, Sinopec hopes the fleet would serve its stated ambition to become a top regional supplier of VLSFO.The fleet would include new orders of 50 vessels of 8…

Pic: Indian Oil Corporation Ltd

Asian LPG Market to Cross $109Bln by 2024

The Asian liquefied petroleum gas (LPG) market stood at over $81.4 billion in 2018 and is projected to grow at a CAGR of over 5% to cross $109 billion by 2024, as increasing demand for LPG  as a fuel for power generation in remote and off-grid locations in comparison to its less environment-friendly alternatives like coal, diesel and fuel oil.Increasing demand for LPG used to run vehicles (Autogas)  is being witnessed as it is a comparatively cheaper automotive fuel and can be used in vast applications related to transportation…

Photo: BIMCO

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.

AdobeStock / © Jose Gill

Energy Transfer: VLCC Offshore Port to be Ready Early 2023

Energy Transfer LP said on Thursday discussions with potential shippers to build an offshore crude export facility in Texas capable of handling supertankers were progressing on schedule, with the project expected to be in service by late 2022 or early 2023.The company has also made advances on the regulatory and permitting process for the project, Marshall McCrea, Energy Transfer's chief commercial officer, said on the company's quarterly earnings call.Plans call for the facility to be connected to Energy Transfer's Nederland…

Photo: BIMCO

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.

Pic: Neste Corporation

Neste Offers LSFO in Germany

Finland’s oil refiner Neste Corporation has made low-sulphur fuel oil (LSFO)available in Bremerhaven, Germany in response to the upcoming IMO 2020 global regulation.Neste and the German BMT Bunker und Mineralöltransport GmbH have signed a partner agreement concerning distribution and sales of Neste MarineTM 0.5. This new marine fuel, containing maximum 0.5% sulphur, has been available in Bremerhaven, Germany, since the beginning of November 2019. BMT is a bunkering services company with a long experience in the sales of marine fuels.

Venezuela's Oil Exports top 800,000 bpd Again

Venezuela's oil exports eased in October, but surpassed 800,000 barrels per day (bpd) for second month in a row, helping to drain an inventory buildup that had forced the OPEC country to cut output, according to documents and data.Since the United States imposed sanctions on Venezuelan state-run oil firm PDVSA in January to oust socialist President Nicolas Maduro, the OPEC-member country has struggled to find customers and tankers for its oil.New rounds of sanctions in August and September on Venezuela and maritime firms carrying the nation's oil pushed its crude stocks to record levels…

Patrik Berglund, CEO & Co-founder. Photo: Xeneta

Xeneta Expects Further Disruption in Container Rates

Further disruption in ocean freight rates expected despite best efforts from leading carriers, according to Xeneta Container Rates Alert.Long-term contracted ocean freight rates for carriers continued their downward trend through the month of October, it pointed out.The latest freight data from the XSI Public Indices report from Xeneta shows a continued drop in contracted freight rates as the industry heads into the key seasonal months.Rates on a number of key routes have continued a steady downward slide since early summer but have yet to fall below the levels seen one year ago…

Pic: International Renewable Energy Agency (IRENA)

IRENA: Shipping Industry Must Cut Emissions

The International Renewable Energy Agency (IRENA) highlighted the importance of reducing shipping emissions and following the path towards a carbon-zero industry, in line with International Maritime Organization (IMO)’s sustainability targets.IRENA said that immediate action is required if the global shipping industry is to meet a target of halving its carbon emissions by the middle of the century.With heavy fuel oil covering 82 per cent of the sector’s energy needs, decarbonizing global shipping will play a critical role in achieving climate objectives…

File Image: AdobeStock / © 14KT Gold

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%…

Vancouver Fraser Port Authority. Image: SEA\LNG

B.C. Backs LNG Bunkering

The British Columbia Government has joined Vancouver Fraser Port Authority and FortisBC to establish the first ship-to-ship LNG marine refueling – or bunkering – facility on the west coast of North America.The use of LNG to power the world’s ocean-going vessels is forecast to expand and B.C. is well positioned to benefit from this growth.According to industry standards, replacing diesel fuel with LNG has the potential to reduce greenhouse gas (GHG) emissions by approximately 20%. Because FortisBC’s Tilbury facility runs on clean B.C.