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Wednesday, 14 December 16
20/20 VISION! - JOHN N. COTZIAS
 2020; A year that could be changing shipping. In early November, the International Maritime Organization (IMO) announced that it would set a 0.5% sulphur cap on shipping emissions by 2020. This ruling applies to ships worldwide, and ships will have to ensure that the use of fuel oil on board meets the new sulphur content requirement. The current limit is set at 3.5% and shipowners will have more than 3 years to reduce the marine Sulphur usage by 7 times below current limits.
The Sulphur cap aims to provide a significant benefit to the environment and human health, particularly near port cities and coastal communities. Newer ships with advanced fuel options are being built, however older ships will have to choose between paying more for fuel and installing equipment to reduce emissions. Main engines, auxiliary engines and boilers are all considered areas of fuel usage on board ships.
Today, there are different blends of low sulphur fuel in different geographical locations and compatibility of these is still questioned. However, taking into account today’s bunker prices, using the low sulphur fuel poses a $200/tonne extra cost. The use of exhaust gas cleaning systems known as “Scrubbers” is the only solution for vessels to comply with gas emissions and allow them to continue using their normal fuel. Estimated cost of installing scrubbers on existing ships ranges from $ 1.3 million and can reach levels exceeding $ 3.0 million on larger and more demanding ships needing extensive funnel and steel modifications. Even so, scrubbers are not totally eco-friendly. Current systems involve either wet exhaust Vs dry exhaust or open loop vs closed loop technologies. In cases of closed loop and wet exhaust systems the collection of the particulates and the proper ecological disposal of same has to be addressed. This is another product that will have a disposal cost which, significant or not, still poses an additional running cost.
The biggest concern that may also be a game changer in our industry is that today and most likely by 2020 there is the possibility for existing refinery capacity proving inadequate to meet demand for clean fuel. Capacity is one question and geographical location is another. New refineries will need to be created with more capacity, also in more strategic locations and we see a major logistical undertaking for all links in the bunker supply chain. This need may impose new trade routes for product tankers and increased demand for these will benefit freight rates. Many countries say that 2020 is too soon and propose 2025 as a safer implementation date. However the decision of switching to more expensive fuel vs installing scrubbers is the result of the following formula; Daily Consumption X Extra $200/tonne X Years of projected operation of the vessel. If the ship has few years left until the end of its life, and if its second-hand price over its scrap price is marginally close to the cost of installing scrubbers then there is a greater possibility that she will be scrapped. This applies to all ship types and may lead to a mass exodus… towards the beaches. Supply of tonnage will be reduced giving freight rates a serious boost.
So in 2020, the 0.5% sulphur regulation together with the implementation of the Water Ballast Treatment convention will present two major costs that will dictate who goes to the beach and who is destined for more voyages ahead…!!!
“20/20 Vision” will be needed in our ship investments going forward with the pre-mentioned issues being the determining factor for the age of the asset one invests in today.
By John N. Cotzias
SnP Broker
Compiled by:
Intermodal Research & Valuations
Analysts:
Ms. Eva Tzima
Disclaimer and legal disclosure: For any further queries please do not hesitate to contact our Research & Valuations Department. The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no reproducing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.
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Tuesday, 17 October 17
SULPHUR 2020: COMING, READY OR NOT - ALIBRA SHIPPING
Some 70% of shipping companies surveyed say they do not believe the industry is ready for IMO’s 2020 deadline, when a global limit of 0.5% su ...
Tuesday, 17 October 17
U.S RECORD EXPORTS OIL TO EAST HAS HELPED THE TANKER TRADE - GEORGE LAZARIDIS
There was a flood of fresh news this week which clouded the overall prospects of the crude oil market. Just one week prior Saudi Arabia and Russia, ...
Monday, 16 October 17
INDONESIA TO INDIA COAL FREIGHT RATES STAY FIRM
COALspot.com: The daily average earnings for Supramax, for the route Indonesia to India passing through Singapore has stayed firm, week over week, ...
Friday, 13 October 17
INDIKA ENERGY SIGNS SHARE PURCHASE AGREEMENTS FOR AN ADDITIONAL 45% STAKE IN KIDECO
PT Indika Energy Tbk. and its wholly-owned subsidiary PT Indika Inti Corpindo (collectively, “Indika Energy”) has entered into separate ...
Friday, 13 October 17
THE SHORT-TERM OUTLOOK FOR THE PANAMAX MARKET REMAIN POSITIVE - FEARNLEYS
Supramax
The market has picked up strongly since last week with the Chinese holidays. In the Pacific rates are increasing with some strong number ...
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Showing 1911 to 1915 news of total 6871 |
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- CIMB Investment Bank - Malaysia
- GVK Power & Infra Limited - India
- Larsen & Toubro Limited - India
- Ministry of Finance - Indonesia
- Agrawal Coal Company - India
- Medco Energi Mining Internasional
- Miang Besar Coal Terminal - Indonesia
- Sical Logistics Limited - India
- Ministry of Mines - Canada
- Gujarat Sidhee Cement - India
- Global Green Power PLC Corporation, Philippines
- Lanco Infratech Ltd - India
- Bukit Makmur.PT - Indonesia
- SMC Global Power, Philippines
- PowerSource Philippines DevCo
- Semirara Mining Corp, Philippines
- San Jose City I Power Corp, Philippines
- Directorate Of Revenue Intelligence - India
- Metalloyd Limited - United Kingdom
- Indo Tambangraya Megah - Indonesia
- Tamil Nadu electricity Board
- Aditya Birla Group - India
- Parliament of New Zealand
- Maharashtra Electricity Regulatory Commission - India
- Kalimantan Lumbung Energi - Indonesia
- Manunggal Multi Energi - Indonesia
- Borneo Indobara - Indonesia
- Coal and Oil Company - UAE
- Jorong Barutama Greston.PT - Indonesia
- Bulk Trading Sa - Switzerland
- Bhatia International Limited - India
- Orica Mining Services - Indonesia
- SN Aboitiz Power Inc, Philippines
- Bharathi Cement Corporation - India
- India Bulls Power Limited - India
- Sojitz Corporation - Japan
- Merrill Lynch Commodities Europe
- Kaltim Prima Coal - Indonesia
- Standard Chartered Bank - UAE
- European Bulk Services B.V. - Netherlands
- Kohat Cement Company Ltd. - Pakistan
- Sakthi Sugars Limited - India
- Semirara Mining and Power Corporation, Philippines
- ASAPP Information Group - India
- South Luzon Thermal Energy Corporation
- Indian Oil Corporation Limited
- Bhoruka Overseas - Indonesia
- Vizag Seaport Private Limited - India
- Salva Resources Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Makarim & Taira - Indonesia
- Cement Manufacturers Association - India
- Vedanta Resources Plc - India
- Australian Commodity Traders Exchange
- Africa Commodities Group - South Africa
- Edison Trading Spa - Italy
- Rashtriya Ispat Nigam Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sindya Power Generating Company Private Ltd
- Kumho Petrochemical, South Korea
- International Coal Ventures Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Kideco Jaya Agung - Indonesia
- McConnell Dowell - Australia
- AsiaOL BioFuels Corp., Philippines
- Dalmia Cement Bharat India
- Riau Bara Harum - Indonesia
- Formosa Plastics Group - Taiwan
- Straits Asia Resources Limited - Singapore
- Renaissance Capital - South Africa
- Anglo American - United Kingdom
- IEA Clean Coal Centre - UK
- Billiton Holdings Pty Ltd - Australia
- Coalindo Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
- Star Paper Mills Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Tata Chemicals Ltd - India
- Thai Mozambique Logistica
- Global Coal Blending Company Limited - Australia
- Petron Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Ind-Barath Power Infra Limited - India
- Madhucon Powers Ltd - India
- Commonwealth Bank - Australia
- Bangladesh Power Developement Board
- Sinarmas Energy and Mining - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Posco Energy - South Korea
- Mercator Lines Limited - India
- Ambuja Cements Ltd - India
- Eastern Energy - Thailand
- PetroVietnam Power Coal Import and Supply Company
- Economic Council, Georgia
- London Commodity Brokers - England
- Chettinad Cement Corporation Ltd - India
- Heidelberg Cement - Germany
- Xindia Steels Limited - India
- CNBM International Corporation - China
- Krishnapatnam Port Company Ltd. - India
- Trasteel International SA, Italy
- Kapuas Tunggal Persada - Indonesia
- Ministry of Transport, Egypt
- Meralco Power Generation, Philippines
- Essar Steel Hazira Ltd - India
- Electricity Authority, New Zealand
- Cigading International Bulk Terminal - Indonesia
- Malabar Cements Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Marubeni Corporation - India
- Uttam Galva Steels Limited - India
- Indonesian Coal Mining Association
- Indika Energy - Indonesia
- Therma Luzon, Inc, Philippines
- Australian Coal Association
- Timah Investasi Mineral - Indoneisa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Antam Resourcindo - Indonesia
- Central Electricity Authority - India
- Grasim Industreis Ltd - India
- Maheswari Brothers Coal Limited - India
- Deloitte Consulting - India
- Bukit Baiduri Energy - Indonesia
- Parry Sugars Refinery, India
- Orica Australia Pty. Ltd.
- Singapore Mercantile Exchange
- Interocean Group of Companies - India
- IHS Mccloskey Coal Group - USA
- Jaiprakash Power Ventures ltd
- The State Trading Corporation of India Ltd
- Attock Cement Pakistan Limited
- Sarangani Energy Corporation, Philippines
- Eastern Coal Council - USA
- Rio Tinto Coal - Australia
- Power Finance Corporation Ltd., India
- Georgia Ports Authority, United States
- Port Waratah Coal Services - Australia
- PTC India Limited - India
- Bhushan Steel Limited - India
- Banpu Public Company Limited - Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Siam City Cement PLC, Thailand
- Leighton Contractors Pty Ltd - Australia
- Baramulti Group, Indonesia
- Global Business Power Corporation, Philippines
- Goldman Sachs - Singapore
- Coastal Gujarat Power Limited - India
- Alfred C Toepfer International GmbH - Germany
- Gujarat Electricity Regulatory Commission - India
- Pendopo Energi Batubara - Indonesia
- Central Java Power - Indonesia
- TeaM Sual Corporation - Philippines
- OPG Power Generation Pvt Ltd - India
- Chamber of Mines of South Africa
- Wood Mackenzie - Singapore
- Videocon Industries ltd - India
- New Zealand Coal & Carbon
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Kepco SPC Power Corporation, Philippines
- Siam City Cement - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indian Energy Exchange, India
- PNOC Exploration Corporation - Philippines
- Intertek Mineral Services - Indonesia
- ICICI Bank Limited - India
- Meenaskhi Energy Private Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Mjunction Services Limited - India
- Samtan Co., Ltd - South Korea
- Jindal Steel & Power Ltd - India
- Barasentosa Lestari - Indonesia
- Binh Thuan Hamico - Vietnam
- Wilmar Investment Holdings
- Toyota Tsusho Corporation, Japan
- Electricity Generating Authority of Thailand
- Altura Mining Limited, Indonesia
- MS Steel International - UAE
- Carbofer General Trading SA - India
- Aboitiz Power Corporation - Philippines
- Latin American Coal - Colombia
- Planning Commission, India
- GAC Shipping (India) Pvt Ltd
- Romanian Commodities Exchange
- White Energy Company Limited
- SMG Consultants - Indonesia
- Karaikal Port Pvt Ltd - India
- Independent Power Producers Association of India
- Directorate General of MIneral and Coal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Thiess Contractors Indonesia
- GMR Energy Limited - India
- Mercuria Energy - Indonesia
- VISA Power Limited - India
- Iligan Light & Power Inc, Philippines
- Energy Development Corp, Philippines
- The Treasury - Australian Government
- Vijayanagar Sugar Pvt Ltd - India
- The University of Queensland
- Bayan Resources Tbk. - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Price Waterhouse Coopers - Russia
- TNB Fuel Sdn Bhd - Malaysia
- LBH Netherlands Bv - Netherlands
- Savvy Resources Ltd - HongKong
- Mintek Dendrill Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Energy Link Ltd, New Zealand
- Minerals Council of Australia
- Indogreen Group - Indonesia
- Oldendorff Carriers - Singapore
- Sree Jayajothi Cements Limited - India
- Simpson Spence & Young - Indonesia
- Holcim Trading Pte Ltd - Singapore
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