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Friday, October 30, 2020

Oil Products News

© papa / Adobe Stock

Rhine Water Level Rises, Too Shallow in North for Full Shipping

Water levels on the Rhine in Germany have risen after rain in past days but are still too shallow in northern areas for cargo vessels to sail fully loaded, traders said on Friday.The river had fallen below normal levels in late May after dry weather. Shallow water means vessel operators impose surcharges on freight rates, increasing costs for cargo owners.Repeated rain this week has raised water to normal levels in central and southern sections of the river. But the Rhine is still too shallow for normal sailings in northern sections around Cologne and Duisburg…

Source: BIMCO, Clarksons

BIMCO Tanker Rate Analysis: Reality Kicks In, Rates Fall

Tanker shipping: sky high freight rates replaced by reality of falling global oil demandGeopolitical tensions have now eased, leaving freight rates to feel the full effects of the weak underlying market and falling demand. Tanker shipping looks set to be under pressure for the rest of the year.Demand drivers and freight ratesThe tanker shipping industry was once again caught in a whirlwind, as freight rates skyrocketed with little regard to the poor market fundamentals before the latter once again caught up with rates.

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Low Water Hampers Rhine River Shipping

Low water levels after recent dry weather are preventing cargo vessels from sailing fully loaded on the Rhine river in Germany and adding surcharges to the usual freight rates, traders said on Monday.Low water is hampering shipping on the entire German section of the river, traders said.Shallow water means vessel operators impose surcharges on freight rates, increasing costs for cargo owners.The Rhine is an important shipping route for commodities including grains, minerals, coal and oil products including heating oil.German companies faced supply bottlenecks and production problems in 2018 af

Image Credit: Port of Rotterdam

COVID-19 to Wipe 20% of Traffic in Europe's Largest Port

Throughput at the Port of Rotterdam is set to drop by up to 20% this year as the coronavirus pandemic disrupts production and trade worldwide, Europe's largest sea port said on Thursday.Throughput of containers, coal, oil products and other bulk goods already declined 9.3% in the first quarter from a year earlier, the port authority said, as economies around the globe shut down in an attempt to contain the coronavirus outbreak."We are facing unprecedented disruptions", the port's…

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Singapore Oil Trader Hin Leong Meets Banks over Finances

Singapore oil trader Hin Leong held a call with banks on Tuesday after they failed to provide a letter of credit to the firm to purchase at least one cargo of oil products due to load this month, four sources said.The coronavirus pandemic has led to an unprecedented slump in fuel demand and hammered oil prices, making it difficult for trading firms to make a profit. Hin Leong is one of the largest fuel traders in Asia and an operator of a major tanker fleet.Several banks which offer credit facilities to Hin Leong held a call with the company and its advisers on Tuesday…

Source: BIMCO, Clarksons

While Oil Prices Plummets, Tanker Rates Fly High

If one ever needed proof that, no matter how dire the situation, there is always a silver lining, look no further than the crude tanker market, which has seen it day rates skyrocket in the face of a global pandemic that has effectively ground world commerce to a crawl.As is the case with other gravity defying business phenomena, geopolitics is a central factor, in this case a battle between Russia and Saudi Arabia to flood the world with oil in the face of declining demand and…

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Shipping Not Immune to a Pandemic -BIMCO

The World Health Organization (WHO) has declared the outbreak of the novel coronavirus a pandemic. There is little doubt that this will have significant implications for the shipping industry. But to what extent? BIMCO expects that the strict containment measures imposed by governments around the world will result in substantially lower global economic growth and consequentially, lower demand for shipping. Container and dry bulk shipping are at the front line when it comes to feeling the fallout…

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Russia to Disinfect Ships from Iran, Italy and South Korea

Russia has ordered the mandatorydisinfection of ships arriving at the Black Sea ports of Novorossiisk and Yuzhnaya Ozereyevka from Iran, Italy and South Korea because of the coronavirus, a  document seen by Reuters showed.A branch of Rospotrebnadzor, Russia's consumer safety watchdog, has ordered port agents "to arrange the disinfectionof ships arriving from these countries before the border is opened" in the city of Novorossiisk, the document showed.Novorossiisk port is one of the biggest on the Black Sea.

Image: TORM

TORM Secures $496M for Debt Refinancing

Denmark-based product tanker company TORM has obtained a commitment for a total of USD 496 million from a syndicate of lenders to refinance its debt and bolster its capital structure.The carrier of refined oil products said the total amount is a combination of two separate term facilities and a revolving credit facility, which will be used to refinance the company’s debt covering a total of USD 502 million.Following the refinancing, TORM does not have any major debt maturities until 2026 which supports TORM’s strong capital structure…

Left: Situation at the start of works and after completion of the HES Hartel Tank Terminal quay walls and jetty. Foto: Paul Martens, HES Hartel Tank Terminal

HES Hartel Tank Terminal Handed Over

The 1.3 Million cbm HES Hartel Tank Terminal, a project of HES International, has been completed on schedule.The HHTT Consortium, comprising Van Hattum and Blankevoort (Koninklijke VolkerWessels), Mobilis (TBI) and Boskalis Nederland, has handed over the construction site to its client, the Port of Rotterdam Authority. This contract involved a total amount of over EUR 100 million.The HHTT Consortium started constructing this challenging project on Maasvlakte in December 2017.The project comprises the construction of a 1…

Ed Grimm, (second from left) CEO, Southern Towing Company during a crew visit.

Interview: Ed Grimm, CEO, Southern Towing Company

“In God we trust. All others must have data.”When Ed Grimm took the helm of Southern Towing Company (STC)as President and CEO, he inherited an enviable team of leaders, engineers, mentors, communicators and analysts. Today STC is a clear leader on the inland waterways, pioneering and proving the business and safety value of Z-Drives on the river towboats.How did you come to the top spot at Southern Towing Company?I started in the energy industry at 16 working at an oil storage depot in New York Harbor, working there through high school and putting myself through college.

Image: TORM

TORM Conducts 16 Scrubber Installations

TORM, a pure play product tanker company and one of the world's leading carriers of refined oil products, expects to install a total of 44 scrubbers and has since the last quarter committed to an additional ten scrubber installations.The new installations support our balanced approach to the new sulfur regulation, with scrubbers.The recently decided additional scrubber installations will be conducted during the first and the second quarter of 2020.As of 12 November 2019, TORM has conducted 16 scrubber installations.

Pic: TORM

Product Tanker Freight Rates Rebounds

Product tanker freight rates softened in the third quarter of 2019 but rebounded strongly at the start of the fourth quarter following an increase in crude tanker rates that began after the attacks on Saudi Arabian oil facilities and accelerated dramatically to multi-year high levels at the end of September when the US imposed sanctions on two subsidiaries of China's COSCO Shipping.Denmark-based TORM said that growth in global demand for oil products generally remained subdued…

Image: Port of Rotterdam

Rotterdam Port Continues to Grow in Q3

The Port of Rotterdam announced  a 1% rise in cargo handing, after it handled 112.4 million tonnes of freight, meaning that the total of 353.5 million tonnes were transmitted up to the end of the third quarter.Volume growth was mainly driven by containers, crude oil, LNG and biomass. There was a reduction in the transshipment of coal and mineral oil products.Allard Castelein, Port of Rotterdam Authority CEO: "In the third quarter we again saw healthy growth in terms of containers, one of the Port Authority’s strategic spearheads.

Grace 1 remains impounded, not because of its flag but because it was suspected of taking oil to Syria in breach of EU sanctions, an allegation that Iran denies. Image Credit: © MarineTraffic.com

INSIGHTS: Noose Tightens Around Iranian Shipping

Somewhere on its journey from the waters off Iran, around Africa's southern tip and into the Mediterranean, the Grace 1 oil tanker lost the flag under which it sailed and ceased to be registered to Panama. Iran later claimed it as its own.The ship carrying 2 million barrels of Iranian crude was seized by British Royal Marines off Gibraltar, raising tensions in the Gulf where Iran detained a UK-flagged ship in retaliation.Grace 1 remains impounded, not because of its flag but because it was suspected of taking oil to Syria in breach of EU sanctions…

Image Credit: AdobeStock/ © 14KTGold

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…

AdobeStock / © mikesjc

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.

Image: Maersk Product Tankers

Maersk in Sale, Leaseback Pact with ICBC

Danish tanker shipping company Maersk Product Tankers has just entered a sale-and-leaseback agreement for four medium range (MR) vessels with the Chinese bank, Industrial and Commercial Bank of China (ICBC).The four ships were built in 2015 and 2016 and will be chartered back to Maersk Product Tankers on ten-year bareboat contracts. The company will retain options for the vessels and will still undertake the commercial and technical management for the vessels.“The agreement will increase financial flexibility and strengthen the financial position of Maersk Product Tankers…

AdobeStock / © Jose Gill

U.S. Sanctions Bite; Traders Shun 300 Tankers

Nearly 300 oil tankers globally have been placed off limits as companies fear violating U.S. sanctions against Iran and Venezuela, driving freight rates to new highs, industry sources said.The move has taken roughly 3% of the global oil tanker fleet out of the market, according to industry sources and data on Refinitiv Eikon, sending rates soaring to secure tankers to ship oil, particularly to Asia."Freight rates are going through the roof and people are getting very nervous with the cost of shipping…

AdobeStock / © Gear STD

Russia's Rosneft Tenders marine bunkers in euros

Top Russian oil producer Rosneft has put up marine fuel cargos for sale with the euro as the default currency, a tender document showed on Monday, in line with its plan to sell oil products in the single currency instead of the U.S. dollar.Rosneft said it had tendered to sell up to 70,000 tonnes of low-viscosity marine fuel with sulphur content of up to 1% from its oil refineries with delivery between Sept. 1 and Oct. 31 on a freight-on-board (FOB) Black Sea basis or FOB St Petersburg…

Image: Vitol

Vitol, ENH Form LNG Trading JV

Commodity trading company Vitol and the Mozambican state-owned oil and gas company ENH have formed ENH Energy Trading, a partnership focused on trading oil products.The Dutch energy and commodity trading company said in a press note that ENH Energy Trading will initially be owned 51% by ENH and 49% by Vitol. It is anticipated ENH’s share will increase over time.ENH Energy Trading will focus on energy commodities, in particular LNG, LPG and condensate, enabling ENH to create additional…

World’s first LNG-powered crude oil tanker (courtesy of SCF Group)

Shell Charters LNG-Powered Tanker Fleet

Shell Tankers (Singapore) Private Ltd has agreed a long-term deal to charter a fleet of 10 LNG dual-fuel Aframax crude oil tankers from Sinokor Petrochemical Co Ltd, which expects to take delivery of them from Samsung Heavy Industries in South Korea in 2021."Shell has agreed to charter a fleet of new liquefied natural gas (LNG)-fueled crude oil and products tankers, as part of its drive to decarbonise shipping," said a press note.Separately, Shell has agreed long-term charters for four new LNG dual-fuel oil products tankers, from institutional investors advised by J.P.

U.S. Deploys Troops to Middle East, Blames Iran for Tanker Attacks

The United States on Friday announced the deployment of 1,500 troops to the Middle East, describing it as an effort to bolster defenses against Iran as it accused the country's Revolutionary Guards of direct responsibility for this month's tanker attacks.President Donald Trump's administration also invoked the threat from Iran to declare a national security-related emergency that would clear the sale of billions of dollars' worth of weapons to Saudi Arabia, the United Arab Emirates…

Pic: Gazpromneft Marine Bunker

Gazpromneft Marine Bunker in Pact with Cruise Lines

The Gazprom Neft bunkering business Gazpromneft Marine Bunker has concluded new agreements with cruise operators Royal Caribbean International and Saga Cruises.Gazpromneft Marine Bunker will be managing approximately 60 bunkering operations for Royal Caribbean and Saga cruise liners during the summer navigation season (May—September 2019) at St Petersburg’s Marine Façade passenger port.Total sales of marine fuels under these contracts are expected to be in the order of 55,000…

Chart: BIMCO

BIMCO: VLCC Freight Rates from Gulf to China Doubles

VLCC spot freight rates between the Arabian Gulf and China rose 101% in the days between June 13, 2019 and June 20, 2019, in the aftermath of attacks on two tankers in the Strait of Hormuz. Spot freight rates for a VLCC, carrying 2 million barrels of oil, between the Arabian Gulf and China reached USD 25,994 per day on June 20, their highest level since March and significantly above the May average of USD 9,979 per day.Despite this increase, freight rates on this route only narrowly exceeds the daily break-even costs of a VLCC…

Pic: Port of Rotterdam

Volume Rises at Port of Rotterdam

Port of Rotterdam posted a record overall freight tonnage in the first quarter of 2019, up 5.1% on the same period last year, thanks to strong growth in container traffic.In total, 123.9 million tonnes were handled compared with 117.8 million tonnes in the same period in 2018."The increase mainly concerned the throughput of containers (+7.3% in TEU, +5.9% in tonnes) and fuels. Mineral oil products, iron ore and scrap throughput fell," said a press release from the largest port in Europe…