bunker prices

Bunker spread narrows in January

January bunker prices for heavy fuel oil (HFO), marine gas oil (MGO) which is 0.1% sulphur and very low sulphur fuel (LSFO) which is the blended low sulphur oil have converged in the first three weeks of the IMO 2020 regulation coming into force.

On 7 January bunker prices stood at US$401/tonne for HFO and US$740 for both LSFO and MGO. By the 10 January that convergence had already begun with a spread of US$326 between LSFO and HFO with MGO dipping US$12/ tonne more than LSFO.

Ten days later on...

https://container-news.com/bunker-spread-narrows-in-january/

Maersk Pricing Bunkers at $50 Discount To MGO and Adds New Fuel Fee

Maersk says it is pricing its IMO 2020 grade fuel at a discount of $50/mt to 0.10%S MGO for its BAF calculations, reports Ship&Bunker.

Note to customers

Due to a lack of clear VLSFO pricing ahead of the new global 0.50% sulfur cap for bunkers, Maersk says it is pricing its IMO 2020 grade fuel at a discount of $50/mt to 0.10%S MGO for its BAF calculations.

Maersk explained in a note to customers, “Contrary to our plans and expectations, it seems highly unlikely that there will be any well...

http://mfame.guru/maersk-pricing-bunkers-at-50-discount-to-mgo-and-adds-new-fuel-fee/

Two companies sue Valero of selling bad bunkers

Two companies filled lawsuits in federal courts in Texas reporting that ships they operated in 2018 were damaged by contaminated bunker fuel sold by a Valero Energy Co subsidiary Valero Marketing and Supply Co, as Reuters reports.

Despite allegations, a Valero spokesperson hasn’t replied and declined to leave a comment.

Moreover, the National Shipping Co of Saudi Arabia stated that it paid more than  $1.1 million for repairs and replacement fuel for a vessel that they used at sea for two days...

https://safety4sea.com/two-companies-sue-valero-of-selling-bad-bunkers/

LR recognizes Maersk Tankers Bunker Adjustment methodology

Maersk Tankers uses its proprietary methodology Bunker Adjustment to distribute payments to pool partners according to the bunker consumption of their ships compared to the pool average. Lloyd’s Register reviewed the methodology, confirming its conformity to recognised industry quality standards.

The Bunker Consumption methodology calculates how much fuel each pool ships consumes in relation to the pool average and enables Maersk Tankers as a pool manager to distribute payments to pool partners...

https://safety4sea.com/lr-recognizes-maersk-tankers-bunker-adjustment-methodology/

Report: The economic impact of GHG mitigation measures on shipping

IMO’s initial strategy on GHG reduction from ships stipulates that the industry should assess the impacts on states prior to adoption of the mitigation measures. Introducing greenhouse gas mitigation measures, such as carbon prices applied to bunker fuels in the range of 10 to 50 USD/ton of CO2, might increase maritime transport costs by 0.4% – 16%, according to a new report by the World Bank. However, this would only marginally increase the import prices of goods (by less than 1%).

The paper...

https://safety4sea.com/report-the-economic-impact-of-ghg-mitigation-measures-on-shipping/

Drewry: East-West contract rates reduce shippers’ costs

Ocean freight rates for cargoes moving under contracts on major East-West routes decreased by 7% in the fourth quarter of 2018, which is mostly driven by moderate fall in the Asia-Europe rates, according to Drewry.

The cost reduction, based on contract freight rate data provided confidentially by Asian, American and European retailers and manufacturers to Drewry’s Benchmarking Club, shows that “shippers who negotiate well with carriers can continue to reduce their multi-million freight spend on...

https://safety4sea.com/drewry-east-west-contract-rates-reduce-shippers-costs/

MSC announces new bunker charge mechanism for 2019

As per a previous announcement in late September, Geneva-based major MSC Mediterranean Shipping Company is introducing new bunker charges as of 1 January 2019 in line with 2020 sulphur cap. After considerable analysis of operating costs and related market factors, the company has now established a new price mechanism – the BRC (Bunker Recovery Charge) – which will be transparent to respective trades.

With regard to IMO’s 2020 sulphur cap, MSC has estimated that the cost of the various changes it...

https://safety4sea.com/msc-announces-new-bunker-charge-mechanism-for-2019/

Woodmac: Oil and gas firms need to boost spending to meet demand

Global oil and gas development spend needs to increase by around 20% to meet future demand growth and ensure companies sustain production next decade, according to energy consultancy Wood Mackenzie. The consultant says the recovery is much slower and shallower than in previous cycles and forecasts that development spend will increase 5% this year, after a 2% rise on 2017.

Companies will need to start investing again to sustain their business. But decision-making will be fraught with...

https://safety4sea.com/woodmac-oil-and-gas-firms-need-to-boost-spending-to-meet-demand/

European Shippers disapprove mechanism of surcharges ahead 2020

European Shippers’ Council (ESC) announced it disapproves the mechanism of surcharges that shipping liners launch to cover the higher rate of lower sulphur fuel, calling for a dialogue with container liners to find the best mechanism to share the costs.

Carriers impose it unilaterally without any negotiation with shippers and ignore a market approach to the global problem,

…ESC noted in an official statement.

The IMO 2020 sulphur cap regulation mandates that ships must run on fuel containing no...

https://safety4sea.com/european-shippers-disapprove-mechanism-of-surcharges-ahead-2020/

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