IMO low-sulphur regulations

Ocean carriers unlikely to recover the full cost of IMO 2020 compliance

Notwithstanding the significant impact to the bottom line of ocean carriers from the coronavirus outbreak, it is also becoming increasingly apparent that they have failed to pass on all of the extra cost of IMO 2020 cleaner fuel legislation to their customers.
According to Bimco’s chief shipping analyst, Peter Sand, container freight rates have not risen sufficiently to cover the price of compliance.
“The hike this year was not enough, with the …

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Carrier bosses angry as scrubber fitting delays start to impact earnings

Even before the coronavirus outbreak, scrubber retrofits on container vessels at Chinese yards were subject to substantial delays.
According to Alphaliner data, pro-scrubber carrier MSC has seen its ships “severely delayed”, with the longest stay to date the 19,437 teu MSC Erica, which has been idle for 175 days.
The consultant also notes that MSC also has a number of ships waiting in queues to enter Chinese yards, including its 14,036 teu …

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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 …

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

Platts monthly commentary: container trades at a low ebb

The true cost of IMO 2020 compliance has yet to be proven, but with the spread between 0.5%- and 3.5%-sulphur fuels currently at over $300 per tonne in Rotterdam, only carriers that have installed scrubbers will be rubbing their hands with glee.
But for the others, the question that has dominated the market over the past few years continues to rings true: who will shoulder these increased costs and how will …

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https://theloadstar.com/platts-monthly-commentary-container-trades-at-a-low-ebb/

Investment in scrubbers starting to pay off as carriers are offered ‘double’ rates

Ships leaving yards after scrubber retrofits are being held at anchor to await open slots on service networks and may face further idling due to soft demand forecasts, said Alphaliner.
However, given the substantial fuel cost saving achievable by these vessels, still able to bunker with HFO (heavy fuel oil), against the more-expensive LSFO (low-sulphur fuel oil) that ships without scrubber technology must consume, carriers’ ship planners want to redeploy them …

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Bangladesh shippers hard hit by low-sulphur bunker fuel surcharges

Shippers in Bangladesh sending a 40ft container from Chittagong to the deepsea transhipment hubs of Colombo and Singapore must pay a $100 per  box bunker adjustment factor (BAF) low-sulphur surcharge.
“Some operators have been collecting the surcharge since December and some in January to adjust the fuel oil price hike,” said Iqbal Hassan, general manager of local ship agency and customs brokerage QC Shipping.
He added that from Chittagong to Europe and the …

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https://theloadstar.com/bangladesh-shippers-hard-hit-by-low-sulphur-bunker-fuel-surcharges/

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 …

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Suez Canal greenlights ships using HFO and bans use of open-loop scrubbers

Despite the recent introduction of  low-sulphur regulations, the Suez Canal Authority (SCA) will continue to allow ships transiting the waterway to burn heavy fuel oil (HFO) without the need for scrubbers.
Adding to the confusion for ship managers is a ban by the SCA on the discharge of wash water – used in the open-loop scrubber process – while vessels make the passage.
In effect, this means ships with scrubbers installed must …

The post Suez Canal greenlights ships using HFO and bans use of...

https://theloadstar.com/suez-canal-greenlights-ships-using-hfo-and-bans-use-of-open-loop-scrubbers/

East coast shipping in India grinding to a halt with lack of LSFO

Last week The Loadstar reported that a lack of available low sulphur fuel oil was beginning to be noticed in certain trades, and Splash247 today provides further evidence that the transition to the new fuel emissions regulation is not going as smoothly as originally hoped, with vessels from Calcutta to Chennai, including container feeder ships, hit by a scarcity of the new fuel type. “Coastal shipping operations along India’s eastern …

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Rising low-sulphur fuel costs begin to bite shipping lines in Asia

Although the 1 January switch to maximum 0.5% low-sulphur fuel for shipping appears to have passed without major disruption, liner consultancy Alphaliner has reported instances of idle containerships waiting for compliant fuel.
The consultant said it had recorded “several cases of laden ships at anchor, apparently waiting for LSFO [low-sulphur fuel oil] bunkers”.
It said the carrier most affected was Singapore-based Pacific International Lines (PIL), which apparently has had at least six …

The...

https://theloadstar.com/rising-low-sulphur-fuel-costs-begin-to-bite-shipping-lines-in-asia/

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