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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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Monday, 17 September 18
GLENCORE RETURNS TO JAPAN COAL TALKS SCUPPERED BY HIGH PRICES - BLOOMBERG
Mining giant Glencore Plc and Japanese utilities have resumed thermal coal supply negotiations, restarting talks that fell apart earlier this year ...
Monday, 17 September 18
SMALL PERCENTAGE OF THE WORLD FLEET WILL FIT SCRUBBERS - FORECASTS : METTE KRONHOLM FRAENDE
In recent months, there have been numerous reports of a strong pick-up in demand for scrubbers. On 1 January 2020, however, the number of ships fit ...
Saturday, 15 September 18
POWERING SUSTAINABLE DEVELOPMENT WITH LOW EMISSION COAL TECHNOLOGIES - WCA
In its 5th Strategic Energy Plan this year (2018), the Japanese Cabinet recognised coal as an important energy resource, necessary for the country& ...
Friday, 14 September 18
10 YEARS ON FROM LEHMAN, HOW IS SHIPPING'S "HANGOVER"? - CLARKSONS RESEARCH
On 15th September 2008, the collapse of Lehman Brothers crystallised the financial crisis and the onset the worst economic downturn for a century. ...
Thursday, 13 September 18
OPEC SEES SLOWER 2019 OIL DEMAND GROWTH, WARNS ON ECONOMY
Crude Oil Price Movements
In August, the OPEC Reference Basket declined by $1.01 m-o-m, settling at $72.26/b. Crude oil futures were also down ...
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Showing 1616 to 1620 news of total 6871 |
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- Bhushan Steel Limited - India
- Maheswari Brothers Coal Limited - India
- GVK Power & Infra Limited - India
- Sinarmas Energy and Mining - Indonesia
- Straits Asia Resources Limited - Singapore
- Neyveli Lignite Corporation Ltd, - India
- Medco Energi Mining Internasional
- Billiton Holdings Pty Ltd - Australia
- Price Waterhouse Coopers - Russia
- White Energy Company Limited
- Kapuas Tunggal Persada - Indonesia
- Indian Energy Exchange, India
- Timah Investasi Mineral - Indoneisa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Gujarat Electricity Regulatory Commission - India
- Jindal Steel & Power Ltd - India
- Commonwealth Bank - Australia
- Global Business Power Corporation, Philippines
- Meralco Power Generation, Philippines
- Baramulti Group, Indonesia
- Wilmar Investment Holdings
- Australian Commodity Traders Exchange
- Semirara Mining and Power Corporation, Philippines
- CNBM International Corporation - China
- Asmin Koalindo Tuhup - Indonesia
- Malabar Cements Ltd - India
- Karaikal Port Pvt Ltd - India
- Indogreen Group - Indonesia
- Parry Sugars Refinery, India
- Goldman Sachs - Singapore
- The State Trading Corporation of India Ltd
- Sindya Power Generating Company Private Ltd
- Salva Resources Pvt Ltd - India
- Central Electricity Authority - India
- Indian Oil Corporation Limited
- Mintek Dendrill Indonesia
- Holcim Trading Pte Ltd - Singapore
- PTC India Limited - India
- Toyota Tsusho Corporation, Japan
- Star Paper Mills Limited - India
- Uttam Galva Steels Limited - India
- Formosa Plastics Group - Taiwan
- Wood Mackenzie - Singapore
- Larsen & Toubro Limited - India
- Lanco Infratech Ltd - India
- South Luzon Thermal Energy Corporation
- Interocean Group of Companies - India
- Bukit Asam (Persero) Tbk - Indonesia
- Indo Tambangraya Megah - Indonesia
- Singapore Mercantile Exchange
- New Zealand Coal & Carbon
- Bhoruka Overseas - Indonesia
- Georgia Ports Authority, United States
- PowerSource Philippines DevCo
- Bharathi Cement Corporation - India
- Sakthi Sugars Limited - India
- Jaiprakash Power Ventures ltd
- Orica Australia Pty. Ltd.
- OPG Power Generation Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Ceylon Electricity Board - Sri Lanka
- The Treasury - Australian Government
- Siam City Cement PLC, Thailand
- Meenaskhi Energy Private Limited - India
- Dalmia Cement Bharat India
- Sical Logistics Limited - India
- ICICI Bank Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Orica Mining Services - Indonesia
- Attock Cement Pakistan Limited
- Heidelberg Cement - Germany
- Edison Trading Spa - Italy
- Thiess Contractors Indonesia
- Energy Link Ltd, New Zealand
- Agrawal Coal Company - India
- McConnell Dowell - Australia
- Rio Tinto Coal - Australia
- AsiaOL BioFuels Corp., Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Videocon Industries ltd - India
- Port Waratah Coal Services - Australia
- Electricity Authority, New Zealand
- Jorong Barutama Greston.PT - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Alfred C Toepfer International GmbH - Germany
- Coal and Oil Company - UAE
- Tata Chemicals Ltd - India
- Antam Resourcindo - Indonesia
- Energy Development Corp, Philippines
- Oldendorff Carriers - Singapore
- IEA Clean Coal Centre - UK
- Cigading International Bulk Terminal - Indonesia
- Australian Coal Association
- Kaltim Prima Coal - Indonesia
- Iligan Light & Power Inc, Philippines
- Anglo American - United Kingdom
- Kumho Petrochemical, South Korea
- Posco Energy - South Korea
- GMR Energy Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Vedanta Resources Plc - India
- Merrill Lynch Commodities Europe
- Eastern Energy - Thailand
- Bhatia International Limited - India
- Bulk Trading Sa - Switzerland
- Cement Manufacturers Association - India
- Miang Besar Coal Terminal - Indonesia
- LBH Netherlands Bv - Netherlands
- Renaissance Capital - South Africa
- Gujarat Mineral Development Corp Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Petron Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- CIMB Investment Bank - Malaysia
- Barasentosa Lestari - Indonesia
- Manunggal Multi Energi - Indonesia
- Chettinad Cement Corporation Ltd - India
- International Coal Ventures Pvt Ltd - India
- Deloitte Consulting - India
- PetroVietnam Power Coal Import and Supply Company
- VISA Power Limited - India
- Mercuria Energy - Indonesia
- Vizag Seaport Private Limited - India
- Carbofer General Trading SA - India
- Mjunction Services Limited - India
- Independent Power Producers Association of India
- Global Green Power PLC Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Bank of Tokyo Mitsubishi UFJ Ltd
- PNOC Exploration Corporation - Philippines
- Borneo Indobara - Indonesia
- Ind-Barath Power Infra Limited - India
- Economic Council, Georgia
- Electricity Generating Authority of Thailand
- Grasim Industreis Ltd - India
- Tamil Nadu electricity Board
- Bayan Resources Tbk. - Indonesia
- European Bulk Services B.V. - Netherlands
- Madhucon Powers Ltd - India
- IHS Mccloskey Coal Group - USA
- Globalindo Alam Lestari - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Sree Jayajothi Cements Limited - India
- Ministry of Mines - Canada
- Latin American Coal - Colombia
- Makarim & Taira - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Standard Chartered Bank - UAE
- Semirara Mining Corp, Philippines
- Altura Mining Limited, Indonesia
- Ambuja Cements Ltd - India
- Sojitz Corporation - Japan
- Coalindo Energy - Indonesia
- Central Java Power - Indonesia
- Trasteel International SA, Italy
- SMC Global Power, Philippines
- Indonesian Coal Mining Association
- ASAPP Information Group - India
- Kobexindo Tractors - Indoneisa
- Directorate Of Revenue Intelligence - India
- Essar Steel Hazira Ltd - India
- Global Coal Blending Company Limited - Australia
- Mercator Lines Limited - India
- Riau Bara Harum - Indonesia
- Binh Thuan Hamico - Vietnam
- Marubeni Corporation - India
- Maharashtra Electricity Regulatory Commission - India
- Kohat Cement Company Ltd. - Pakistan
- Chamber of Mines of South Africa
- Indika Energy - Indonesia
- Ministry of Finance - Indonesia
- Ministry of Transport, Egypt
- Kepco SPC Power Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Directorate General of MIneral and Coal - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Planning Commission, India
- Coastal Gujarat Power Limited - India
- Siam City Cement - Thailand
- Power Finance Corporation Ltd., India
- TeaM Sual Corporation - Philippines
- Bukit Baiduri Energy - Indonesia
- Pendopo Energi Batubara - Indonesia
- Metalloyd Limited - United Kingdom
- Minerals Council of Australia
- San Jose City I Power Corp, Philippines
- SN Aboitiz Power Inc, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Aditya Birla Group - India
- Banpu Public Company Limited - Thailand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Thai Mozambique Logistica
- Romanian Commodities Exchange
- London Commodity Brokers - England
- Eastern Coal Council - USA
- Xindia Steels Limited - India
- Sarangani Energy Corporation, Philippines
- Savvy Resources Ltd - HongKong
- The University of Queensland
- SMG Consultants - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Samtan Co., Ltd - South Korea
- Simpson Spence & Young - Indonesia
- Bukit Makmur.PT - Indonesia
- Parliament of New Zealand
- MS Steel International - UAE
- Krishnapatnam Port Company Ltd. - India
- Bangladesh Power Developement Board
- Aboitiz Power Corporation - Philippines
- GN Power Mariveles Coal Plant, Philippines
- Intertek Mineral Services - Indonesia
- Africa Commodities Group - South Africa
- Kideco Jaya Agung - Indonesia
- Therma Luzon, Inc, Philippines
- India Bulls Power Limited - India
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