Ships with scrubbers must lock in high sulfur fuel oil needs to avoid supply hassles
Shipowners with scrubber-equipped vessels may face challenges securing fuel unless they lock in their requirements well ahead of the new low sulfur emission limits on bunkers that apply from 2020, a senior industry executive quoted as saying last week.
Large volumes of high sulfur fuel oil will be available next year but not all bunker suppliers will be willing to store, move and supply it, Douglas Raitt, Regional Consultancy Manager with Lloyd’s Register Asia, said at the MARE Shipping Forum in Singapore. Lloyd’s Register is one of the world’s largest marine classification societies. Its fuel oil bunker analysis and advisory service, or FOBAS, is widely used across the globe. No more than 3percent of the global fleet of over 85,000 merchant ships is expected to have scrubbers installed by 2020, so marine demand for HSFO will be limited, Raitt said. Under International Maritime Organization regulations that take effect on January 1, 2020, it will be mandatory globally to use marine fuels with no more than 0.5percent sulfur content, down from 3.5percent currently.
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China’s Jan LPG imports rise 23percent on month to 1.78 mil mt, fall 9pc on year
China imported 1.78 million mt of LPG in January, up 23.3percent from December but down 9 percent year on year, latest General Administration of Customs data showed Tuesday. The country exported 81,657 mt of LPG in January, down 17.2percent on month and down 16.7percent on year. As a result, China’s net LPG imports were up 26.3percent on month at 1.7 million mt in January, according to S&P Global Platts calculations based on the customs data. Market sources attributed the month-on-month rise in LPG imports to restocking by importers before the Lunar New Year holidays, healthy cracking margins at propane dehydrogenation plants and firm winter demand from household users.
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UAE’s Fujairah oil hub starts to offer cleaner marine fuels
The port of Fujairah in the United Arab Emirates (UAE) has begun offering cleaner marine fuel oils that comply with stricter global emissions rules which come into effect at the start of 2020, a port document showed.
Marine fuels, also known as bunkers, with a maximum 0.5 percent sulphur content are “available in Fujairah as early as February 2019 onwards,” said a notice to mariners posted on the Port of Fujairah’s website last week. Fujairah is among the world’s largest bunkering hubs. The International Maritime Organization (IMO) will prohibit ships from using fuels with sulphur content above 0.5 percent from Jan. 1, 2020, compared with 3.5 percent. To comply with IMO 2020 rules, shippers can switch to burning cleaner but more expensive oil, invest in exhaust cleaning systems known as scrubbers that may allow them to still use cheaper high-sulphur fuels, or redesign vessels to run on alternatives like liquefied natural gas (LNG).
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India refiners’ crude throughput falls 3.6pc
Indian refiners processed 21.94 million mt, or an average 5.2 million b/d, of crude oil in January, down 3.6 percent year on year, latest data from the oil ministry showed, reflecting a partial shutdown at private refiner Reliance Industries Ltd.
The December figure was 4.3percent higher than in December. The average utilization rate of refiners was 104.4percent in January, compared with 100percent in December, and 114.6percent in January 2018. Analysts said the decline in overall crude processing last month was mainly due to the maintenance shutdown of a crude distillation unit and the coker unit at RIL’s domestic-focused refinery at Jamnagar in Gujarat state for about four weeks from January 16.
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CMA CGM rate hikes from Canada WC and for Asia-Europe
French shipping giant CMA CGM will raise rates March 15 from Canada’s west coast to the world, and from Asia to North Europe until further notice but not beyond March 31.
In the Asia-Europe case these new FAK rates will apply to all Asian ports including Japan, Southeast Asia and Bangladesh to all Northern European ports including the UK and the full range from Portugal to Finland/Estonia. Thus new Asia-Europe FAK rates will be US$950 per TEU, $1,700 per FEU, $1,750 per FEU high cube and$1,750 per FEU reefer. A general rate increase of US$100 per container from Canada’s west coast from Vancouver and Prince Rupert and all points in Canada to destinations except Africa and EU countries.
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Container shipping companies cleared in US investigation
The world’s two biggest container shipping companies on Tuesday said they have been cleared in an investigation of the sector by the US Department of Justice (DoJ). Denmark’s Maersk and Switzerland’s Mediterranean Shipping Company (MSC) were among several companies ordered to testify in an antitrust investigation that began in 2017 over practices by an industry that is the backbone of world trade. Other lines included Germany’s Hapag Lloyd. Container companies, which transport everything from TVs to bananas, have tried reduce costs through alliances to pool sailing schedules and port calls. Critics say this can lead to reduced services and increased prices for customers.
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Adani ports falls 8pc on acquisition plan Agro logistics
Adani Ports and Special Economic Zone (APSEZ) slipped 8.5 percent to Rs 324 apiece on the BSE in early morning trade on Monday after Adani Logistics (ALL) on Saturday announced that it would be acquiring Adani Agri Logistics (AALL) from Adani Enterprises (AEL) in an all-cash deal, at a proposed enterprise value of Rs 1,662 crore. The transaction is expected to complete by March 2019. AALL is a wholly owned subsidiary of the Gautam Adani-led APSEZ. AEL is related party falling under joint control i.e. Adani Group. The company said the strategic move is in line with the Ports operator’s vision to lead the integrated logistics services market in India with focus on hinterland logistics.