MGO

Singapore Higher Bunkering Premiums & Delays Making Shipowners Look Elsewhere

According to an Argus Media report, low spot availability of high-sulphur marine fuel oil (HSFO) and 0.5pc sulphur marine fuel oil in Singapore has caused severe bunkering delays and prompted some shipowners to bunker in other ports despite price premiums.

Extremely Tight Situation

A bunker supplier said marine fuel oil availability has been “extremely tight” in Singapore, and that there are alternative bunkering ports to the east and west of the port. The supplier’s earliest expected delivery...

http://mfame.guru/singapore-higher-bunkering-premiums-delays-making-shipowners-look-elsewhere/

Scrubber Orders Swell Yet Alternative Fuels Seems Preferred

Scrubber orders till date this year have dwarfed all previous years combined, according to data on DNV GL’s online Alternative Fuels Insight (AFI) database, writes Paul Gunton for an article in ShipInsight.

Scrubber installations

With the information provided by scrubber manufacturers, at the time of writing AFI reports a total of 3,023 ships in operation or on order for delivery this year have, or will have, exhaust scrubbers. 

The corresponding figure at the end of 2018 was just 767.

Though the...

http://mfame.guru/scrubber-orders-swell-yet-alternative-fuels-seems-preferred/

Freight Rates Bound To Increase As MGO Use Increases Ahead of 2020

According to Shipping analyst Poten & Partners the impending 2020 sulphur cap is driving tanker charter rates as owners are forced to use MGO, reports Ship Insight. 

Freight Rates Driven by Non-Scrubbers Ship

In its weekly analysis, Poten says because only a small percentage of ships will have scrubbers by the start of the year, the freight rates will, at least initially, be driven by ships without scrubbers, burning more expensive low-sulphur fuel.

HFO MGO Freight Rates Compared

To examine the...

http://mfame.guru/freight-rates-bound-to-increase-as-mgo-use-increases-ahead-of-2020/

Singaporean authorities arrest 11 men over illegal transaction of MGO

Singapore’s Police Coast Guard (PCG) in a joint operation with the MPA Singapore arrested 11 men, ageing between 31 – 52, for their suspected involvement in an illegal transaction of marine gas oil (MGO) at sea off Northern Tuas.

Specifically, on October 30 2019, the two partners arrested six crewmembers of a craft, which belonged to a marine service providers and additional five crew members of a foreign-registered tugboat for illegal transaction of MGO at the sea off Northern Tuas.

According to...

https://safety4sea.com/singaporean-authorities-arrest-11-men-over-illegal-transaction-of-mgo/

IMO 2020: Market Witness Transition To Compliant Fuels

The International Bunker Industry Association (IBIA) said that the market transition to low-sulphur bunker fuels is under way with an increasing number of ports offering new low-sulphur grades following a recent uptick in demand, reports Argus Media.

Demand for IMO-compliant grades

Speaking at the International Maritime Organisation (IMO) sulphur cap symposium on 17th October, the IBIA’s Unni Einemo said shipowner demand for IMO-compliant grades with less than 0.5pc sulphur has been limited to...

http://mfame.guru/imo-2020-market-witness-transition-to-compliant-fuels/

Scrubber Equipped VLCCs Will Benefit from Sulphur Cap

New sulphur regulations from 2020 is expected to get significantly more expensive for charterers to transport crude oil and petroleum products across the ocean, says an article published in Poten & Partners website.

Scrubber-fitted ships 

Charterers, who will get to choose from scrubber-fitted ships and those running on compliant low sulphur fuels, are expected to foot the majority of these costs.

Poten & Partners in their latest tanker report say that, charterers of VLCC opting for MGO to comply...

http://mfame.guru/scrubber-equipped-vlccs-will-benefit-from-sulphur-cap/

Hapag-Lloyd Cruises Vows To Run All Ships on LSFO?

  • Hapag-Lloyd Cruises has planned to switch over to low-pollutant MGO from July 2020 in an effort to cut total sulphur emissions by 80%.
  • It has voluntarily committed to using MGO with less than 0.1% sulphur content to operate its three classic cruise ships and three new expedition ships.
  • In addition to reducing sulphur emissions, switching the fuel will also cut soot and particulate emissions by up to 30%.

According to an article published in Cruise and Ferry, Hapag-Lloyd Cruises has planned to...

http://mfame.guru/hapag-lloyd-cruises-vows-to-run-all-ships-on-lsfo/

Will 2020 be a Game Changer for Marine Fuel Availability?

RAI takes a fresh look at its December 2017 study and updates it with the latest publicly available information, reports Ship & Bunker.

What will happen to HSFO with global cap approaching?
  • There will be plentiful Marine Gas Oil (MGO) at a premium over the current 3.5%S IFO 380 of about $200 to 300/MT, with possibly a higher peak price in mid-2020.
  • There will be a “moderate” amount of VLSFO (very low sulfur “residual” fuel oil); the price will be $40 to $80/MT less than MGO.

But the big problem...

http://mfame.guru/will-2020-be-a-game-changer-for-marine-fuel-availability/

SK Trading inks contracts for VLSFO supply

SK Trading International (SKTI) has inked six-month contracts with shippers for the supply of very low sulphur fuel oil (VLSFO), beginning from the fourth quarter, according to a company official.

With demand for stable compliant sulphur marine fuels increasing ahead of the IMO 2020 sulphur cap, shippers must comply with the new regulations by switching to lower sulphur fuels, or by installing exhaust gas cleaning systems.

GET THE SAFETY4SEA IN YOUR INBOX!

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For this reason, a SKTI official...

https://safety4sea.com/sk-trading-inks-contracts-for-vlsfo-supply/

IMO 2020 and Its Effect on Midstream

  • New IMO regulations imposing stricter sulfur limits on the shipping industry have broad implications for energy, including midstream.
  • Demand for crude and refined products from the US are expected to be impacted by the shift in regulations.
  • US energy infrastructure companies are positioned to capitalize on the growing need for US crude exports to produce compliant fuels.

Shippers and energy companies have spent the last four years readying themselves for this January and will need to adapt to...

http://mfame.guru/imo-2020-and-its-effect-on-midstream/

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