Fuel Costs

Scrubber Usage on the Rise! Bans Does Not Seem To Block!

  • Shippers opt to use scrubbers to reduce fuel costs when compared to other methods.
  • After IMO 2020 sulphur cap implementation LSFO prices keeps soaring.
  • Shippers who adopted using LSFO are currently rushing to choose scrubbers. 
  • Scrubber-equipped VLCC and cape size bulk carriers’ average daily fuel cost reductions exceeded those of their LSFO-based counterparts by US$15,600 and US$8,040, respectively. 
  • The average charterage-converted profit was US$76,760 for scrubber-equipped vessels and...

http://mfame.guru/scrubber-usage-on-the-rise-bans-does-not-seem-to-block/

Intra-Asia Trades Witness Wavering Freight Rates and Faltering Profits

Increased competition and vessel cascading on intra-Asia trades has led to rock-bottom freight rates and plunging profits for regional carriers, reports the Loadstar.

Annual drop in freight rates

Charlie Chu, executive vice president of Thai-based intra-Asia specialist Regional Container Line (RCL), said freight rates were declining every year.

“Ship upsizing in intra-Asia trade is quite popular, same as other trades globally,” he told The Loadstar.

“The consolidation between large carriers through...

http://mfame.guru/intra-asia-trades-witness-wavering-freight-rates-and-faltering-profits/

[Answer] How To Improve Vessel Performance Through Trim Optimisation

An article published in Riviera Maritime Media highlights how monitoring trim gives a clearer picture of both vessel and fleet performance and can also reduce costs.

Today we are dwelling on that article to give an insight on how you can reduce costs all the while maintaining vessel and fleet performance.

Asset Monitoring, the Key

“If you want to be competitive you have to know what’s going on in your company, and how your assets perform,” said Hapag-Lloyd Fleet Support Centre’s Martin Köpke at...

http://mfame.guru/answer-how-to-improve-vessel-performance-through-trim-optimisation/

IMO2020: Disquietude Regarding Oil Price Spike

Fresh concerns have been raised over the liner industry’s ability to recoup the increased fuel costs from IMO 2020, reports the Loadstar.

Good news and Cautious news

McKinsey partner Steve Saxon said there was “some good and some cautious news” for carriers in the run up to 1 January, when the new low-sulphur fuel regulation kicks in.

“The good news is there will be sufficient supply of low-sulphur fuel oil (LSFO),” he told delegates at the TPM Asia conference in Shenzhen last week.

“There will be...

http://mfame.guru/imo2020-disquietude-regarding-oil-price-spike/

High Fuel Costs Staring at Shippers As 2020 Nears

Container shipping bunker adjustment factors (BAFs) will rocket later this year as the deadline for the mandatory use of new low-sulfur fuels across the global maritime fleet draws closer, reports Freight Waves.

Container Lines BAFs To Soar?

According to London-based consultant Drewry, the BAFs shippers will face from container lines “will soar between 4Q19 and 1Q20 first and will be very volatile in the first half of 2020.”

Scheduled to enter into force Jan. 1, 2020, the new International...

http://mfame.guru/high-fuel-costs-staring-at-shippers-as-2020-nears/

Hapag-Lloyd Chief: Bullish on Growth and Clawing Back Extra Fuel Costs

  • Hapag-Lloyd’s chief executive, Ralph Habben Jansen expects to see growth of 3-4% this year.
  • Hapag-Lloyd reported a preliminary operating result for the fourth quarter of €164m ($189m) and a full-year debit of €443m last week.
  • The company will also retrofit one of its 17 LNG-ready 15,000 teu vessels, inherited from its merger with UASC, with gas tanks.
  • Hapag-Lloyd expects a $75m-$100m hit to the bottom line this year with the annual cost around $1.1bn a iyear.

Hapag-Lloyd’s chief executive,...

http://mfame.guru/hapag-lloyd-chief-stays-bullish-on-growth-and-clawing-back-extra-fuel-costs/

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