Global Fuel Sulphur Cap

Dodging Environment Rule Getting Harder for Shippers

  • Shippers cannot dodge environmental rules for low fuel bills anymore.
  • Carrying high sulphur cargo, individual vessels could save thousands of dollars every day by cheating.
  • Fairly high compliance is expected in North America and Europe, but not outside those major bunkering hubs, especially in Asia, Africa the Middle East. 
  • China’s shipping association wanted the sulphur cap delayed as the coronavirus has hit the industry’s finances hard. 
  • The IMO said a delay won’t be possible because the...

http://mfame.guru/dodging-environment-rule-getting-harder-for-shippers/

Japan To Maintain HSFO and 0.5% Sulphur Fuel Supply

  • IMO-compliant bunker fuel are available at Japan’s 14 refineries.
  • Around 100,000 b/d low sulfur bunker fuel demand expected
  • HSFO supplies to be maintained to serve owners/operators installing scrubbers on their ships, as Japan will support the use of open-loop scrubbers aboard ships. 

Japanese refineries are ready to supply 0.5% sulfur bunker fuels, well ahead of the International Maritime Organization’s global sulfur mandate for marine fuels, reports Platts.

Sulphur regulation

The IMO will cap...

http://mfame.guru/japan-to-maintain-hsfo-and-0-5-sulphur-fuel-supply/

Fuel Price Differentials To Surpass US$400?

According to a recent Argus Consulting analysis, the price differential between low sulphur marine gas oil (MGO) and high sulphur fuel oil (HSFO) is forecasted to surpass US$400 in the first quarter of 2020, reports Riviera Maritime Media.

LSFO and HSFO price spread

According to Argus consulting figures:

  • The price spread between low and high sulphur fuels has been tracking upward over the last quarter, with an average spread of over US$250. 
  • But the forecast for Q1 2020, following the onset of...

http://mfame.guru/fuel-price-differentials-to-surpass-us400/

IMO 2020 is Already Hiking Cost To Ship Cargo by Sea

  • The effect of the approaching sulphur cap 2020 is already apparent on fleet capacity at sea and on freight rates for cargo shippers.
  • Owners opting for scrubbers to comply with regulation, pull out vessels temporarily from the market causing reducing capacity of ships at sea and rise in rates.
  • 0.9 percent of the VLCC fleet and 0.3 percent of the Capesize fleet was out of service this month for scrubber retrofits, based on data from Clarksons Research.
  • VLCCs averaged $19,000 per day in June,...

http://mfame.guru/imo-2020-is-already-hiking-cost-to-ship-cargo-by-sea/

IMO 2020: Boxship Scrubber Retrofits To Surge

A recent survey shows a fairly large chunk of the boxship fleet to head into repair yards in the coming months leading up to the global sulphur cap, reports Splash 247.

What is the survey findings?

According to Alphaliner’s survey of ships identified for scrubber retrofits, 16 ships ranging in size from 2,900 teu to 18,000 teu are believed to be undergoing retrofit work at various yards in Asia currently.

Analysts at Alphaliner predict up to 30 ships will be out of service each month in the...

http://mfame.guru/imo-2020-boxship-scrubber-retrofits-to-surge/

ExxonMobil : Best Practice Tips for Switching to Low Sulphur Fuel


The global maritime industry is heading full sail toward a dramatic change in fuel with the 0.5% global sulphur cap imposed by the International Maritime Organization.

Ahead of this, ExxonMobil has developed, a set of tips to help the marine industry switch to low sulfur fuels while maintaining vessel’s safe and reliable operation. Here we are highlighting those tips.

  1. First, establish best practice

Prevention is always better than cure, so it is advisable to:

  • Buy fuel that meets the latest...

http://mfame.guru/exxonmobil-best-practice-tips-for-switching-to-low-sulphur-fuel/

FONAR Not a “Free Pass”! Beware of These Before Using It

  • The International Chamber of Shipping has welcomed the decision by the IMO that in exceptional cases, be a valid reason for shipowners to be issued with a FONAR.
  • ICS warns FONARs are “NOT A FREE PASS” to use non-compliant low sulphur fuel, but a last resort and cannot be used repeatedly.
  • Documentary evidence on board to prove the limitations during PSC inspections is a must for the issuance of any FONAR.
  • Number of FONARs a ship has submitted in the past 12 months, and the number the operator...

http://mfame.guru/fonar-not-a-free-pass-beware-of-these-before-using-it/

New is Better in LNG Propulsion : Concludes Major Study

  • Study shows owners prefer LNG propulsion in newbuilds than retrofit existing ones.
  • Out of 143 vessels of global LNG-fuelled fleet, only 8 are retrofits as they spend more time in emissions control area (ECA).
  • Phased adoption of LNG is beneficial as it will allow time to develop the necessary additional infrastructure.
  • LNG averaged US$220 per tonne less than ECA-compliant LSMGO and also retained a substantial discount relative to LSMGO.
  • LNG price hovered between US$64 – US$38 a tonne lower than...

http://mfame.guru/new-is-better-in-lng-propulsion-concludes-major-study/

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