IMO2020

[Infographic] Bunker Prices Crumble Amid COVID Pandemic

The average price paid for bunkers in major ports over the first nine months of 2020 has fallen 10% compared to the same period in 2019, reports Ship & Bunker.

Bunker costs climb high

The average price for IFO380 in Ship & Bunker’s Global Top 20 Port Port index (G20) for January to September 2019 was $421/mt.

With the introduction of the IMO 2020 rule on January 1 meaning the majority of vessels switched to lifting max 0.50%S product, the average G20 VLSFO price over the first nine months of 2020...

https://mfame.guru/infographic-bunker-prices-crumble-amid-covid-pandemic/

Bunker Industry On ‘A Smooth Transition’ Towards Decarbonization

  • Global bunker industry’s smooth transition to IMO 2020 helps to achieve the next goal of decarbonization equally free of hurdles.
  • VLSFO bunker fuel quality i.e., 4% of VLSFO and 1.7% of MGO’s, issues not as much as expected
  • Compliance to the rule has also been fairly good despite the challenges posed by COVID-19 pandemic.
  • IMO greenhouse gases emission cut targets looming, decarbonization has become a focal point for the industry.
  • Ammonia, hydrogen, LNG were among the various alternatives being...

https://mfame.guru/bunker-industry-on-a-smooth-transition-towards-decarbonization/

Switch To IMO 2020 Fuels, So Far, So Good?

  • The much-feared spectre of widespread problems for ships consuming new VLSFO blends since the start of IMO 2020 has, so far, failed to materialize.
  • The shipping industry has largely experienced a smooth sailing six months into the implementation of IMO 2020.
  • Crew proficiency and adequate crew training are important in order for vessels to pinpoint issues, do proper reporting and make contingency plans.

Shipping coping well with IMO 2020, but dispute cases may rise, writes Lee Hong Liang for...

https://mfame.guru/switch-to-imo-2020-fuels-so-far-so-good/

IMO Unveils Bunker Claims Handling Guide for All Parties

According to an article published in Standard Club, IMO has unveiled bunker claims handling guide for a new decade.

Bunker Claims Handling Guide
  • IMO 2020 has wide implications for all parties involved in the physical shipping chain and will involve increased risk, responsibility, and costs.
  • The Bunker Claims Handling Guide for a new decade, available on the right.
  • It introduces members to some of the issues that may arise when seeking to comply with the Sulphur Cap and Carriage Ban.
  • It also...

http://mfame.guru/imo-unveils-bunker-claims-handling-guide-for-all-parties/

CRU: Global Sulphur Cap Leads To Higher Freight Rates

  • The new sulphur cap rule under the recently implemented IMO 2020 will push freight rates up by around 10-20%, says CRU.
  • CRU estimates that 20-25% of the larger Capesize vessels will have scrubbers fitted by end 2020.
  • They consider only the difference in freight rates as the variable that will determine the optimal pay-off period.
  • The IMO regulation will limit sulphur emissions and therefore requires shipowners to consider the options available to comply. Fuel blending will be key to achieving...

http://mfame.guru/cru-global-sulphur-cap-leads-to-higher-freight-rates/

IMO 2020 Settles In: Opportunity for China’s Bunker Fuel Market

Chinese tax reform will trigger a gradual shift in the bunker fuel market away from Asia’s dominant hub, reports Petroleum Economist.

With the new IMO regulations kicking in, the timing of a package of Chinese tax reforms will have a greater impact on the future of the Asian bunker fuel market.

Big game changer

China applies both consumer and value-added taxes to bunker fuels, even for bonded sales. This leads blenders to import about 90pc of the blendstocks, mostly from Singapore and Malaysia.

“The...

http://mfame.guru/imo-2020-settles-in-opportunity-for-chinas-bunker-fuel-market/

SCA Sheds Light on the Open Loop Scrubber Confusion

The Suez Canal Authority (SCA) has clarified its position on the use of open-loop scrubbers whilst transiting the waterway to comply with the new IMO 2020 regulation, reports the Loadstar.

In effect, this means ships with scrubbers installed must switch off the exhaust gas cleaning systems during the 12-hour passage, thus releasing pollutants into the atmosphere.

No to exhaust gas

In a note issued on Sunday which followed confusion over the wording of SCA Circular No 8/2019, the SCA has said that “

http://mfame.guru/sca-sheds-light-on-the-open-loop-scrubber-confusion/

Mikael Laurin, Managing Director, Lean Marine

In episode 127 you meet Mikael Laurin, Managing Director, Lean Marine, a company dedicated to automated-fuel saving and data analysis solutions. Mikael comes from a shipping company where he served as the CEO after a career as a consultant for various companies, start-ups and large entities.

Mikael shares his view on the current market, where he thinks our industry is heading, but he also speaks about when his heritage called him to be part of the family-owned shipping company. He welcomes the...

https://shippingpodcast.com/mikael-laurin-managing-director-lean-marine/

IMO 2020: Prima Marine Add Details To Their FSU Business

Thailand’s Prima Marine Public Company Limited said that it has expanded its floating storage units business to support demand for storing and blending low sulfur fuel oils in lieu of the global sulfur mandate, reports Platts.

Floating storage units

Prima Marine is among the largest fully integrated business operator in oil tanker and oil and petroleum storage in Thailand.

The company invested in two floating storage units, or FSUs recently, Prima Marine said in a report detailing its latest...

http://mfame.guru/imo-2020-prima-marine-add-details-to-their-fsu-business/

IMO 2020 Planning: Economic and Geopolitical Causes at Play

An article in Supply Chain Dive briefs about the various situations which determine the compliance of maritime standards with the approaching IMO 2020.

Compliance with IMO 2020 regulations 

There are three options to meet the Jan. 1 low-sulfur deadline:

  • Burn the more expensive, very low sulfur fuel oil (VLSFO).
  • Invest in an expensive scrubber system and keep buying the existing high-sulfur bunker fuel.
  • Retrofit existing ships or purchase new builds to use liquefied natural gas (LNG).
Will low...

http://mfame.guru/imo-2020-planning-economic-and-geopolitical-causes-at-play/

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