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Wednesday, 25 July 18
TANKER MARKET INSIGHT - DIMITRIS KOURTESIS
 We are now into the second half of 2018, which so far has not been a fruitful year for tankers. With 2020 quickly approaching we need to consider the implications arising from the new fuel directives. 2020 seems to be the year that there will be a noticeable increase in the cost of moving cargo, with the forces driving costs upwards being either scrubbers and/or the increased demand for cleaner fuels.
The need for cleaner fuels will not only boost demand for product tankers though. Given the much higher crude oil quantities the production of these cleaner fuels requires compared to HFO, a boost in crude oil demand and a consequent support on crude tanker freight rates appears to also be in the cards.
The increase in fuel costs will definitely increase revenues but not profits. Therefore small owners with older, less efficient units, not capable of installing scrubbers, will be forced to either merge with larger companies, who have the cash flow to support financing, or in some cases will have to sell/ scrap and exit the industry. This filtering process will separate companies that managed to evolve and endure through the cycle and concurrently will correct the oversupply of tonnage, which drives rates in some cases well below their operating expenses today.
Vessels equipped with scrubbers or eco units will have a competitive advantage and owners will be able to fix periods at levels including a premium, as charterers will prefer to charter compliant and fuel efficient units. The market right now for a 1 year time charter, medium range non eco / non scrubber equipped tanker trading in clean petroleum products is around USD 13,000 per day. On the other hand, an eco/scrubber equipped unit would get approximately USD 14,500 - 15,000 per day for the same period.
We can identify that the difference of USD 1,500 - 2,000 per day is the premium charterers are paying in order to be 2020 compliant and have efficient units under their time charter. Apart from Ship owners/operators and charterers, it's also quite interesting to see how modern refineries are getting prepared for these changes. According to HSBC's research on IMO 2020, four of the most technically advanced refineries, S-oil, SK Innovation, Reliance Industries and Repsol are further upgrading and investing in their plants. They target to eliminate their HFO production by early to mid-2020. Specifically, SKI will focus on refining only very low sulphur fuel oil (VLSFO). The goal of these refineries is to find themselves in a position where, come 2020, they have substantially decreased– or even better entirely eliminated – the production of HFO.
Mr. T. Veniamis on behalf of the Union of Greek Ship Owners, stated that Greek ship owners are working hard to comply with the 2020 requirements (0.5% sulfur cap). He also stressed the importance that these cleaner fuels are – aside from compliant – also safe for both the crew and the ship itself. To conclude, the general sentiment particularly for Owners with units up to MR size without scrubbers, is to patiently wait and plan day by day, as the investment of installing scrubbers on older units may not make financial sense given today’s fundamentals.
By Dimitris Kourtesis
Tanker Chartering 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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Saturday, 20 October 18
PANAMAX: THE PACIFIC SAW A LARGE VOLUME OF FIXING, WITH INDONESIA AGAIN THE DRIVING FORCE - THE BALTIC BRIEFING
Capesize
A positive end to last week after a shaky start, with a Coaltrans taking participants out of the market early on and with rates slippi ...
Thursday, 18 October 18
SUPRAMAX: INDO/WC INDIA SUPRAS ARE FIXING AROUND MID $14000S P/D BASIS SPORE DELIVERY
Capesize
The volatile Cape market continues this week, especially in the Pacific says Fearnleys in its latest weekly report.
...
Thursday, 18 October 18
COAL SHORTAGE HITS POWER SECTOR AGAIN; HOW INDIA CAN GET ITS PRODUCTION RIGHT - ANIL SWARUP
By convincing states of the value proposition of increased production, the record production of Fy15 & Fy16 can be emulated.
The ...
Thursday, 18 October 18
CHINA POWER REFORM NEUTRAL ON GRIDS, PRESSURES IPP MARGINS - FITCH RATINGS
China's power sector reform has a broadly neutral impact on transmission grids although it will pressure the power producers' margins, says ...
Wednesday, 17 October 18
ESCROW SERVICE FOR BALTIC MEMBERS NOW LIVE
The Baltic Exchange’s Escrow Service for its members to hold deposits for ship sale transactions goes live today (15 October). The service is ...
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Showing 1586 to 1590 news of total 6871 |
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- European Bulk Services B.V. - Netherlands
- IEA Clean Coal Centre - UK
- Barasentosa Lestari - Indonesia
- Sakthi Sugars Limited - India
- Australian Coal Association
- Port Waratah Coal Services - Australia
- Chettinad Cement Corporation Ltd - India
- Essar Steel Hazira Ltd - India
- Mercator Lines Limited - India
- Economic Council, Georgia
- Altura Mining Limited, Indonesia
- Merrill Lynch Commodities Europe
- Simpson Spence & Young - Indonesia
- Timah Investasi Mineral - Indoneisa
- Petrochimia International Co. Ltd.- Taiwan
- ASAPP Information Group - India
- India Bulls Power Limited - India
- Wilmar Investment Holdings
- The University of Queensland
- Bulk Trading Sa - Switzerland
- Holcim Trading Pte Ltd - Singapore
- Sindya Power Generating Company Private Ltd
- Billiton Holdings Pty Ltd - Australia
- Salva Resources Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Karaikal Port Pvt Ltd - India
- Sical Logistics Limited - India
- Anglo American - United Kingdom
- Makarim & Taira - Indonesia
- The Treasury - Australian Government
- Bukit Asam (Persero) Tbk - Indonesia
- Grasim Industreis Ltd - India
- Banpu Public Company Limited - Thailand
- Bharathi Cement Corporation - India
- Electricity Authority, New Zealand
- London Commodity Brokers - England
- Kumho Petrochemical, South Korea
- Baramulti Group, Indonesia
- Indonesian Coal Mining Association
- Aditya Birla Group - India
- Manunggal Multi Energi - Indonesia
- Thiess Contractors Indonesia
- Orica Mining Services - Indonesia
- LBH Netherlands Bv - Netherlands
- Maharashtra Electricity Regulatory Commission - India
- Therma Luzon, Inc, Philippines
- Tata Chemicals Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Ind-Barath Power Infra Limited - India
- Rashtriya Ispat Nigam Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Directorate Of Revenue Intelligence - India
- Electricity Generating Authority of Thailand
- Straits Asia Resources Limited - Singapore
- Planning Commission, India
- Marubeni Corporation - India
- The State Trading Corporation of India Ltd
- Semirara Mining Corp, Philippines
- San Jose City I Power Corp, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Central Electricity Authority - India
- SN Aboitiz Power Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Intertek Mineral Services - Indonesia
- PowerSource Philippines DevCo
- Globalindo Alam Lestari - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Bhatia International Limited - India
- Australian Commodity Traders Exchange
- OPG Power Generation Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Mjunction Services Limited - India
- Indika Energy - Indonesia
- Orica Australia Pty. Ltd.
- Ceylon Electricity Board - Sri Lanka
- GVK Power & Infra Limited - India
- Madhucon Powers Ltd - India
- Jindal Steel & Power Ltd - India
- Commonwealth Bank - Australia
- Kepco SPC Power Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Jorong Barutama Greston.PT - Indonesia
- New Zealand Coal & Carbon
- Tamil Nadu electricity Board
- Toyota Tsusho Corporation, Japan
- Parry Sugars Refinery, India
- Pendopo Energi Batubara - Indonesia
- Independent Power Producers Association of India
- PTC India Limited - India
- Power Finance Corporation Ltd., India
- Oldendorff Carriers - Singapore
- Ambuja Cements Ltd - India
- Renaissance Capital - South Africa
- Attock Cement Pakistan Limited
- GAC Shipping (India) Pvt Ltd
- PNOC Exploration Corporation - Philippines
- Coal and Oil Company - UAE
- Neyveli Lignite Corporation Ltd, - India
- Kapuas Tunggal Persada - Indonesia
- Chamber of Mines of South Africa
- Borneo Indobara - Indonesia
- Mercuria Energy - Indonesia
- Ministry of Transport, Egypt
- Ministry of Mines - Canada
- PetroVietnam Power Coal Import and Supply Company
- Indian Energy Exchange, India
- Agrawal Coal Company - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Siam City Cement - Thailand
- VISA Power Limited - India
- Samtan Co., Ltd - South Korea
- Romanian Commodities Exchange
- Sarangani Energy Corporation, Philippines
- South Luzon Thermal Energy Corporation
- White Energy Company Limited
- Global Business Power Corporation, Philippines
- Indian Oil Corporation Limited
- Vizag Seaport Private Limited - India
- Energy Development Corp, Philippines
- GMR Energy Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Coalindo Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Gujarat Electricity Regulatory Commission - India
- Dalmia Cement Bharat India
- Cigading International Bulk Terminal - Indonesia
- Medco Energi Mining Internasional
- Uttam Galva Steels Limited - India
- Parliament of New Zealand
- Riau Bara Harum - Indonesia
- Interocean Group of Companies - India
- Formosa Plastics Group - Taiwan
- Binh Thuan Hamico - Vietnam
- Semirara Mining and Power Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- McConnell Dowell - Australia
- Gujarat Mineral Development Corp Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Siam City Cement PLC, Thailand
- Meralco Power Generation, Philippines
- Wood Mackenzie - Singapore
- TeaM Sual Corporation - Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indo Tambangraya Megah - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Energy Link Ltd, New Zealand
- AsiaOL BioFuels Corp., Philippines
- Malabar Cements Ltd - India
- Mintek Dendrill Indonesia
- Posco Energy - South Korea
- Kartika Selabumi Mining - Indonesia
- Bayan Resources Tbk. - Indonesia
- Carbofer General Trading SA - India
- Star Paper Mills Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Minerals Council of Australia
- Global Green Power PLC Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Edison Trading Spa - Italy
- Vedanta Resources Plc - India
- Sojitz Corporation - Japan
- Georgia Ports Authority, United States
- Bangladesh Power Developement Board
- Ministry of Finance - Indonesia
- Iligan Light & Power Inc, Philippines
- Singapore Mercantile Exchange
- Xindia Steels Limited - India
- Heidelberg Cement - Germany
- Standard Chartered Bank - UAE
- SMC Global Power, Philippines
- CIMB Investment Bank - Malaysia
- Coastal Gujarat Power Limited - India
- Gujarat Sidhee Cement - India
- Krishnapatnam Port Company Ltd. - India
- Trasteel International SA, Italy
- Kobexindo Tractors - Indoneisa
- International Coal Ventures Pvt Ltd - India
- CNBM International Corporation - China
- MS Steel International - UAE
- Antam Resourcindo - Indonesia
- Thai Mozambique Logistica
- Meenaskhi Energy Private Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Central Java Power - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Kideco Jaya Agung - Indonesia
- Lanco Infratech Ltd - India
- Bukit Baiduri Energy - Indonesia
- Eastern Energy - Thailand
- Price Waterhouse Coopers - Russia
- Indogreen Group - Indonesia
- Eastern Coal Council - USA
- Bukit Makmur.PT - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Rio Tinto Coal - Australia
- Metalloyd Limited - United Kingdom
- Leighton Contractors Pty Ltd - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Miang Besar Coal Terminal - Indonesia
- Cement Manufacturers Association - India
- Maheswari Brothers Coal Limited - India
- Videocon Industries ltd - India
- IHS Mccloskey Coal Group - USA
- Latin American Coal - Colombia
- Alfred C Toepfer International GmbH - Germany
- Larsen & Toubro Limited - India
- Bhoruka Overseas - Indonesia
- Africa Commodities Group - South Africa
- Goldman Sachs - Singapore
- Petron Corporation, Philippines
- SMG Consultants - Indonesia
- Sree Jayajothi Cements Limited - India
- ICICI Bank Limited - India
- Bhushan Steel Limited - India
- Kaltim Prima Coal - Indonesia
- Deloitte Consulting - India
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