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Friday, December 6, 2019

Oil Products News

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.

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…

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…

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…

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.

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.

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…

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…

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…

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…

File Image: AdobeStock / © Jose Gill

Diesel Laden VLCC Changes Course for Togo

The Very Large Crude Carrier (VLCC) Olympic Lyra changed its destination to Lome in Togo from Southwold in Britain, Refinitiv ship tracking data showed.VLCCs have a capacity of around 300,000 tonnes and their arrival in a region can affect refining margins.The Olympic Lyra, sailing from Asia, was supposed to arrive in Britain around May 7, but the shipping data now shows an estimated time of arrival in Lome on April 25. VLCCs often carry refined, or clean, oil products on their maiden journey before switching to crude oil or fuel oil.Reporting by Shadia Nasralla

File Image (CREDIT: AdobeStock / © Jose Gill)

Trafigura Sends More Asian Gasoline to Americas

Commodity trader Trafigura is shipping this month a second newly built crude tanker with Asian gasoline onboard to South America amid strong demand in the West, four industry sources who closely monitor petrol trade flows said on Thursday.Although it is not uncommon for traders to use a brand new crude tanker of 150,000 deadweight tonnage (dwt) to ship clean fuels such as diesel, it is rare to use them for gasoline because of the sheer size."South America likely needs gasoline more than gasoil now.

The CMA CGM refueling operation (CREDIT: GoodFuels Marine

CMA CGM Boxship Refuels with Bio-Fuel

Previously announced IKEA, CMA CGM, GoodShipping Program and Port of Rotterdam pilot celebrates milestone moment in industry-first partnership.IKEA Transport & Logistics Services, CMA CGM, the GoodShipping Program and the Port of Rotterdam announced the successful refueling on Saturday, March 23 of the CMA CGM White Shark with sustainable marine bio-fuel oil.The test, which represents a major step for the decarbonization of ocean freight, saw the companies work together in a first-of-its-kind partnership for the shipping industry.

CMA CGM Group vessel © CMA CGM

Partnership to Test Sustainable Marine Bio-Fuel Oil

IKEA Transport & Logistics Services, CMA CGM, the GoodShipping Program and the Port of Rotterdam have announced they will cooperate in a first of its kind partnership to test and scale the use of sustainable marine bio-fuel oil. The test will commence with a landmark bunkering of the marine bio-fuel oil on a CMA CGM container vessel on March 19th, representing a major step towards the decarbonization of ocean freight.The test is being facilitated by the GoodShipping Program, a sustainable initiative dedicated to decarbonizing ocean freight…

Pic: Port of Rotterdam. Photo: Eric Bakker

Rotterdam Port Achieves TEU Milestone in 2018

Europe's largest port, the Port of Rotterdam ended 2018 with a total container throughput at 469.0 million tonnes (MT) which slightly higher than in 2017,  which was itself a record year (467.4 MT).Container transhipment was the engine of growth again, with a 4.5% increase in tonnage. Measured in TEUs, the standard unit for containers, the increase was 5.7% and the annual total was 14.5 million TEUs – also a record.This strengthens the position of Europe’s largest container port in this strategically important market segment.

Image: Ports & Maritime Organization

Chabahar Port Volumes Up

Iran's Shahid Beheshti Port in Chabahar, which was taken over by Indian Ports Global Limited last month, registered high volumes in in container loading and unloading.“Container and petroleum products unloading and loading in the Chabahar port have increased by 61% and 81% respectively,” Behrooz Aghaee, Director General of Ports and Maritime of Sistan and Baluchestan Province said.Detailing on the performance of the Chabahar port, Aghaee pointed that Loading and unloading of containers operations has grown by 61% within the last 10 months compared to the same period last year.

Image: MRTS

Huge Increase in Arctic shipping

Data from Russia’s ports and Northern Sea Route show that the volume of goods being shipped out into the Arctic waterway are up by 25 percent 2018.According to information from the Russian Transport Ministry, a total of 92.7 million tons was handled by regional seaports, of which almost 70 percent was oil products and liquified natural gas.The biggest increases came in Sabetta, which sits on the icy Yamal Peninsula in the Kara Sea, according to Bellona. With Novatek’s $27 billion Yamal LNG project now in commercial production…

Pic: Ports & Maritime Organization

Iranian Ports Records 78% Growth in Non-oil Transit

Iran's Director of Ports and Maritime office of Lengeh port announced an increase of 78 percent in non-oil transit, a 19 percent increase in safe passenger transport and an increase of 86 percent in container loading and unloading at ports in west of Hormozgan.Ghasem Askari Nasab, reporting on the nine-month performance of the ports of West of Hormozgan in 2017, stated that during this period, a total of 6 million and 759,558 tons of oil and non-oil products were loaded and unloaded at these ports.Of the 1…

Pic: Port of Amsterdam

Record Transshipment at Port of Amsterdam in 2018

Port of Amsterdam achieved a new transhipment record in 2018 with transhipment totalling 82.3 million tonnes, compared to 81.3 million tonnes in the previous year.Together with the other ports in the North Sea Canal Area, total transhipment consequently amounted to 101.8 million tonnes in 2018, said a press release from the 4th busiest port in Europe by metric tonnes of cargo.This is revealed in the provisional transhipment figures announced today. Transhipment in IJmuiden rose by 1% to 18.6 million tonnes. Beverwijk saw transhipment decline by 9% to 0.7 million tonnes.

Pic: Port of Rotterdam Authority

Rotterdam Port Awards Green Award Discount for Vessels

The Port of Rotterdam Authority will widen and facilitate the Green Award discount for sea-going shipping from the start of 2019.The discount will encourage safe and green shipping in the liquid bulk segment. From 2019 onwards, certified chemical tankers and sea-going vessels with a cargo capacity (DWT) of less than 20,000 tons may also make use of the scheme.Also new for 2019 is that the Port Authority is making the port dues process more customer friendly for shipping lines whose vessels call at the Port of Rotterdam.