IMO low-sulphur regulations

More misery for shippers with return of bunker surcharges on the radar

As oil prices head north again, ocean carriers are preparing to ramp up low-sulphur fuel surcharges to add to the misery of shippers struggling with sky-high freight rates, surcharges and premium fees.
Since early September, the price of Brent crude has increased by 41%, to $55 a barrel, with an 8% spike alone last week driven by Saudi Arabia’s pledge to cut output.
During the same period, heavy fuel oil (HFO), consumed …

The post More misery for shippers with return of bunker surcharges on the...

https://theloadstar.com/more-misery-for-shippers-with-return-of-bunker-surcharges-on-the-radar/

Hapag-Lloyd revenue on the up, but volatile fuel prices skim profits

Hapag-Lloyd today said it was maintaining its 2020 ebitda guidance of €1.7bn-2.2bn, despite unpredictable fluctuations in demand, due to the coronavirus pandemic.
This morning it posted a first-quarter ebitda of €469m ($507.8m), a decline of €20m from the same period last year.
This, it said, was largely due to the impact of higher fuel prices in the wake of the IMO’s low-sulphur regulations that came into effect on 1 January.
“Despite the coronavirus …

The post Hapag-Lloyd revenue on the up,...

https://theloadstar.com/hapag-lloyd-revenue-on-the-up-but-volatile-fuel-prices-skim-profits/

Plummeting oil price means carrier investment in scrubbers was a washout

The strategy of carriers, such as MSC, Evergreen and HMM, that heavily invested in exhaust-cleaning scrubbers appears to have backfired.
Global oil prices have slumped to below $20 per barrel, due to the coronavirus pandemic, and bunker prices have reacted accordingly.
The margin between IMO 2020-compliant low-sulphur fuel oil (LSFO) and the heavy fuel oil (HFO) burned by ships fitted with scrubbers, is eroding daily.
According to data supplied by Ship & Bunker, …

The post Plummeting oil price...

https://theloadstar.com/plummeting-oil-price-means-carrier-investment-in-scrubbers-was-a-washout/

Carriers cancel low-sulphur surcharges as fuel prices drop – along with demand

Container spot rates from Asia to Europe remained stable this week and, having withdrawn around a third of headhaul capacity for April, carriers will hope they have done enough to match the collapse in demand.
This week’s Shanghai Containerized Freight Index (SCFI) component for North Europe ticked down by 1.8% to $750 per teu, which is 14% higher than the same week of last year.
Then the price of traditional heavy fuel …

The post Carriers cancel low-sulphur surcharges as fuel prices drop –...

https://theloadstar.com/carriers-cancel-low-sulphur-surcharges-as-fuel-prices-drop-along-with-demand/

Maersk bins its 2020 financial guidance, due to impact of pandemic

Despite its expectations of delivering a better first-quarter result than last year, Maersk said today it was suspending its guidance on full-year earnings as a result of the coronavirus outbreaks around the world.
It said the global pandemic was severely impacting global transport and supply chains, “leading to material uncertainties and lack of visibility”.
It added that while its global operations were “running as normal”, it had decided to suspend its 2020 …

The post Maersk bins its 2020...

https://theloadstar.com/maersk-bins-its-2020-financial-guidance-due-to-impact-of-pandemic/

Carriers pull back on installing scrubbers as price of low-sulphur fuel drops

Ocean carriers are cancelling scrubber retrofits for their ships due to the huge delays at Chinese shipyards and a slump in oil prices, which has raised questions about the economics of the technology.
According to Alphaliner, the number of containerships currently out of service for the installation of exhaust gas cleaning systems remains at a record high of 117, for 1.1m teu.
“On top of this, several vessels are stranded at anchor …

The post Carriers pull back on installing scrubbers as price...

https://theloadstar.com/carriers-pull-back-on-installing-scrubbers-as-price-of-low-sulphur-fuel-drops/

MSC vessel found to be breaking IMO ban on carrying heavy fuel oil

MSC has become the first major ocean carrier to fall foul of the IMO’s ban on carrying non-compliant fuel.
The 9,784 teu post-panamax MSC Joanna has been prohibited from operating in UAE waters for one year and its master banned indefinitely and facing legal action from the country’s Federal Transport Authority (FTA) after allegedly failing to comply with an order to debunker 700 tons of heavy fuel oil (HFO) before entering …

The post MSC vessel found to be breaking IMO ban on carrying heavy...

https://theloadstar.com/msc-vessel-found-to-be-breaking-imo-ban-on-carrying-heavy-fuel-oil/

Chinese puzzle for box ship operators with new ban on open-loop scrubbers

When demand for container shipping renews, vessels returning to China to load exports could find themselves on wrong side of a new emissions law.
At the weekend, the country banned the use of open-loop scrubbers with the ministry of transportation’s 2020 Global Fuel Oil Sulphur Limitation Order Implementation Plan (2020 plan).
It prohibits the use of fuel oil with a sulphur content exceeding 0.5% within 12 miles of China, vessels entering its …

The post Chinese puzzle for box ship operators with...

https://theloadstar.com/chinese-puzzle-for-box-ship-operators-with-new-ban-on-open-loop-scrubbers/

Battle to ban scrubbers heats up, despite claims of even lower-sulphur results

Scrubbers are removing more sulphur from exhaust gas emissions than actually required by the IMO 2020 sulphur cap regulations, according to the Clean Shipping Alliance (CSA) ship operator members.
On 1 January, the limit on sulphur emissions for maritime shipping was cut from 3.5% to 0.5%, but scrubber technology is capable of reducing the level to 0.1%, the maximum allowed for ships transiting designated SECA (sulphur emission control area) regions of …

The post Battle to ban scrubbers heats...

https://theloadstar.com/battle-to-ban-scrubbers-heats-up-despite-claims-of-even-lower-sulphur-results/

Rates hold steady as shippers prioritise getting exports to market

Despite continued weak demand, the comprehensive index of the Shanghai Containerized Freight Index (SCFI) edged down just 1.3% this week, with the US west coast component actually recording a gain.
This provides further evidence that, for now at least, rates are less important to shippers desperate to get their exports to market.
Manufacturing in China is slowly recovering from the coronavirus outbreak lockdowns, although container transport is still reported as “scarce and …

The post Rates hold...

https://theloadstar.com/rates-hold-steady-as-shippers-prioritise-getting-exports-to-market/

+ More
Join Our Newsletter
Enter your email to receive a weekly round-up of shipping news.
icon
By subscribing, you agree with our privacy policy and our terms of service.