Higher fuel costs are triggering increases in ocean carrier bunker surcharges, adding more misery for shippers already struggling with record high freight rates and additional fees.
Today’s price for low-sulphur fuel oil (LSFO) at Rotterdam is just under $500 per ton, which is up 25% since the beginning of the year and some 60% higher than in November.
And carriers are busy resetting their fuel increase recovery mechanisms, effective today or from …
The post No sympathy for carriers from...
For a raft of investors, the most pressing question in 2021 so far has been how long the new container shipping supercycle would last, but for the trade it’s different.
For many freight buyers, the start of the year was characterised by the surprise news that the Saudi government had indicated higher fuel costs might be on the way.
Just before the announcement – good timing! – Premium wrote: “Ocean freight randomness – the skeleton …
The post Supply chain radar: The drama unfolds – spare a...
https://theloadstar.com/supply-chain-radar-the-drama-unfolds-spare-a-thought-for-the-shippers/
With oil prices plunging to less than $20 per barrel, ocean carriers are coming under increased pressure to cancel their bunker surcharges and introduce negative bunker adjustment factors (BAFs) across their networks.
Strict capacity discipline by carriers has supported freight rates on the major tradelanes to compensate for recent demand slumps, but shippers complain that the lines are still charging BAFs – and IMO 2020 low-sulphur surcharges – despite the precipitous …
The post Box carriers...
https://theloadstar.com/box-carriers-turning-a-deaf-ear-to-calls-to-cancel-bafs-as-oil-price-slumps/
The IMO’s sub-committee on pollution prevention and response (PPR) will this week finalise details of the ban from 1 March on the carriage of HFO (heavy fuel oil) on ships not fitted with scrubbers.
The agenda for the London meeting also includes scope for further work on revising the guidelines for the use of the exhaust gas cleaning system alternative to LSFO (low-sulphur fuel oil) in the light of the experience …
The post IMO prepares to ban ships carrying HFO and has another look at scrubbers
https://theloadstar.com/imo-prepares-to-ban-ships-carrying-hfo-and-has-another-look-at-scrubbers/
The containership charter market is ending 2019 on a mixed note, according to Alphaliner’s final analysis of the year.
“Larger vessels of 5,500 teu and over continue to benefit from a tight supply environment with continuously firm charter rates,” said the consultant.
Furthermore, it said that “the persistent lack of tonnage in these sizes” would bode well for owners, especially when demand picked up again next year.
“By contrast,” said Alphaliner, “the situation …
The post Mixed fortunes for...
https://theloadstar.com/mixed-fortunes-for-box-ship-owners-as-the-year-ends-and-a-greener-era-looms/
Cheaper fuel prices saw ocean carriers improve their average operating margin to 3.6% in the third quarter.
This compares with just 0.6% in Q3 last year and is despite a 1.8% decline in freight rates.
According to Alphaliner, the Q3 market leader was Hapag-Lloyd, with an operating margin of 7.8%, followed by Maersk, at 7.3%.
Dragging down the average for the carriers that publish their results was HMM, with a negative operating margin of -5.7%, extending …
The post Cheaper fuel rescues box...
https://theloadstar.com/cheaper-fuel-rescues-box-carriers-q3-margins-but-imo-2020-looms/
I recently asked Michael Kaczmarek, senior vice president marine technology at Carnival Corporation, a $29bn-market-cap behemoth, what he made of the upcoming regulatory changes in the broader shipping industry, as well as whether enforcement risk and other exhaust gas cleaning systems (EGCS)-related risks are real starting 1 January 2020.
After a career in the US Navy, Mr Kaczmarek joined Carnival where he has covered various roles, including VP ports and VP corporate shipbuilding. In his...
The bunker market is far from ready for the substantial switch in demand to low-sulphur fuel, when the IMO’s 0.5% cap comes into force on 1 January next year, according to the Marine Bunker Exchange (MABUX).
In an article published by international shipping association BIMCO, the bunker exchange cautions that “shipowners are ready, but the bunker market is not” –adding that reports from oil majors regarding the delivery of LSFO (low-sulphur fuel oil) …
The post Shipowners may be ready for IMO...
https://theloadstar.com/shipowners-may-be-ready-for-imo-2020-but-the-bunker-market-is-not/
The implications for carriers and BCOs of the IMO low-sulphur regulations that come into force in less than 10 months have dominated this week’s JOC TPM Conference in Long Beach
Normally the annual event, this is the 19th, marks the start of annual contract rate negotiations on the transpacific, but this year the spectre of IMO 2020, and how the greener fuel is to be paid for, has overshadowed all other …
The post Shippers must share the financial impact on carriers of IMO 2020 compliance...
https://theloadstar.com/shippers-must-share-the-financial-impact-on-carriers-of-imo-2020-compliance/
Maersk has announced a deal with New Jersey-based crude oil refiner PBF Logistics to supply its vessels on the US east coast with low-sulphur fuel oil (LSFO) to meet the IMO 2020 regulations.
The pact is a proactive reaction by the Danish group to growing concerns that there could be shortages of compliant fuel for the 1 January 2020 start date of the IMO’s 0.5% fuel cap ruling.
And it follows the …
The post Maersk ensures supply of low-sulphur fuel on US east coast for IMO 2020 appeared first...
https://theloadstar.co.uk/maersk-ensures-supply-of-low-sulphur-fuel-on-us-east-coast-for-imo-2020/