Bunkers

Shipping and bunkers: coronavirus trade shock eclipses IMO 2020 upheaval

Singapore marine fuel

The shipping and bunker sectors spent years in preparation for the historic changes imposed by the International Maritime Organization’s global low sulfur mandate, IMO 2020.

But no sooner did the new rules kick in than market participants had to urgently confront a collapse in crude oil prices and obstructed tradeflows, as the world was gripped by the deadly effects of the coronavirus pandemic, and lockdowns and social distancing became the new norm.

“IMO 2020 has got lost somewhere. But that’s...

https://blogs.platts.com/2020/05/12/shipping-bunkers-coronavirus-trade-imo-2020/

Box carriers ‘turning a deaf ear’ to calls to cancel BAFs as oil price slumps

With oil prices plunging to less than $20 per barrel, ocean carriers are coming under increased pressure to cancel their bunker surcharges and introduce negative bunker adjustment factors (BAFs) across their networks.
Strict capacity discipline by carriers has supported freight rates on the major tradelanes to compensate for recent demand slumps, but shippers complain that the lines are still charging BAFs – and IMO 2020 low-sulphur surcharges – despite the precipitous …

The post Box carriers...

https://theloadstar.com/box-carriers-turning-a-deaf-ear-to-calls-to-cancel-bafs-as-oil-price-slumps/

Charting a course for ammonia as shipping fuel, with tentative steps: Fuel for Thought

Hydrogen infographic

The announcement by Norway’s Equinor in January that it had signed a deal to modify a vessel to run on ammonia highlighted the opportunity for another fuel in the ever-diversifying future of bunker markets.

Equinor said the move was part of a bid to cut carbon emissions to zero. This was a bold move, but part of a wider zeitgeist in the hydrocarbons industry amid growing pressure from the public and lobbyists for companies to provide greener energy.

Ammonia and upstream hydrogen are two potential...

https://blogs.platts.com/2020/02/25/ammonia-shipping-fuel-equinor/

Attention required on bunker figures during port calls in Turkey

In recent months, customs officials in Turkish ports have been showing an increase interest over the declared quantity of bunkers onboard ships, the Skuld P&I Club informed.

As explained, if customs officials discover a difference between the declared bunker quantity in the vessel’s tanks and the quantity calculated by customs officials, any excessive quantum will be confiscated and taken off the vessel for owners’ account.

The authorities considers misdeclaration a criminal act and the vessel’s...

https://safety4sea.com/attention-required-on-bunker-figures-during-port-calls-in-turkey/

Carriers that invested in scrubbers may find the cost higher than expected

Shipping lines that have invested in scrubber technology to comply with the IMO 2020 low-sulphur regulations may be forced to reconsider the wisdom of their investment, as fuel producers appear to be looking for ways to push prices up.
Since the introduction of the legislation this year, the price differential between the now-outlawed high-sulphur fuel oil (HFSO) and low-sulphur fuel oil (LFSO) has been around $200 a tonne.
However, the declining availability …

The post Carriers that invested in...

https://theloadstar.com/carriers-that-invested-in-scrubbers-may-find-the-cost-higher-than-expected/

Nimble Singapore bunker market swiftly adjusts to IMO 2020

Singapore bunker fuel sales

The Singapore bunker market recorded its highest monthly sales volume for the year in December 2019, and uptake of low sulfur bunker fuel finally brought some optimism back into the market as it falls in line with IMO 2020.

The International Maritime Organization’s global sulfur cap, which kicked in January 1, has been the major talking point in the oil and shipping industry for the past three years.

The release of preliminary December sales numbers for Singapore bunker fuel last week showed how...

https://blogs.platts.com/2020/01/23/singapore-bunker-market-adjusts-imo2020/

BAF: more increases still on the cards

Freight rate increases seen on the major east-west trades in recent weeks have largely been attributed to the increased cost of fuel following the introduction of the IMO’s new low-sulphur emission regulations. However, this LinkedIn post from liner analyst Lars Jensen argues that the higher rates are more likely to be the result of a pre-Chinese New Year mini-peak. He notes that when fuel prices were last at the same …

The post BAF: more increases still on the cards appeared first on The...

https://theloadstar.com/baf-more-increases-still-on-the-cards/

Shippers should open talks on container contracts now, says Drewry

Shippers with sizeable volumes shipped under annual contracts should already be opening negotiations with their carriers for 2020, according to Drewry Supply Chain Advisers.
The reason is the continuing weakness of freight rates on the transpacific and Asia-North Europe container trades, said the analyst.
It noted that while container spot rates on the two largest deepsea trades had largely been in freefall this year – declining on average by 12% since the …

The post Shippers should open talks...

https://theloadstar.com/timing-now-right-for-shippers-to-open-talks-on-container-contracts-says-drewry/

Comment: another lacklustre month in container shipping

Another rather lacklustre month draws to a close in the container market for September, in what has been a recurring theme this year.
With the prospect of Chinese Golden Week and the new International Maritime Organization 2020 sulphur cap looming large over the market, rates have been reluctant to rise.
Thrown into the mix, of course, are the same geopolitical issues that continue to dog the market on key tradelanes – ongoing …

The post Comment: another lacklustre month in container shipping...

https://theloadstar.com/comment-another-lacklustre-month-in-container-shipping/

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