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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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Tuesday, 28 August 18
COURT CONCLUDES DELIVERY MADE IN ACCORDANCE WITH TERMS OF LOIS - INCE&CO
Glencore Agriculture BV v Navig8 Chemicals Pool Inc (Songa Winds) [2018] EWCA 1901 (Civ)
In this case, the Commercial Court fo ...
Tuesday, 28 August 18
SUPRAMAX: A COAL TRIP VIA INDONESIA PAID $13,500 ON A 56,000DWT TO WC INDIA - BALTIC BRIEFING
Capesize
The Singapore holiday mid-week disrupted trading and unsettled the market, with owners losing some resilience. The market took on a la ...
Tuesday, 28 August 18
SHIPPING MARKET UPDATE - GEORGE LAZARIDIS
As we edge close to the start of the Autumn Season, a period within the year that is usually characterized as the pivot point from the final quarte ...
Friday, 24 August 18
KOREAN RESTRICTIONS ON COAL SULPHUR IMPACTING HUNTER EXPORTS - THE HERALD
WARNINGS that Korean restrictions on sulphur levels in coal could hurt the Hunter industry appear to have been accurate, according to a report in t ...
Thursday, 23 August 18
RUSSIA'S MECHEL PRODUCED 9.69 MMT OF RUN-OF-MINE COAL IN 1H'2018
Mechel PAO, one of the leading Russian mining and metals companies, announces 1H2018 operational results.
Mechel PAO’s Chief E ...
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Showing 1636 to 1640 news of total 6871 |
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- SMG Consultants - Indonesia
- Sarangani Energy Corporation, Philippines
- Medco Energi Mining Internasional
- New Zealand Coal & Carbon
- Therma Luzon, Inc, Philippines
- Manunggal Multi Energi - Indonesia
- Wood Mackenzie - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Vedanta Resources Plc - India
- LBH Netherlands Bv - Netherlands
- Kartika Selabumi Mining - Indonesia
- Thiess Contractors Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Global Business Power Corporation, Philippines
- The Treasury - Australian Government
- Petron Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Semirara Mining and Power Corporation, Philippines
- Riau Bara Harum - Indonesia
- Merrill Lynch Commodities Europe
- Offshore Bulk Terminal Pte Ltd, Singapore
- Marubeni Corporation - India
- McConnell Dowell - Australia
- Binh Thuan Hamico - Vietnam
- Thai Mozambique Logistica
- Minerals Council of Australia
- Coastal Gujarat Power Limited - India
- Salva Resources Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Attock Cement Pakistan Limited
- Aditya Birla Group - India
- Gujarat Sidhee Cement - India
- European Bulk Services B.V. - Netherlands
- Planning Commission, India
- Iligan Light & Power Inc, Philippines
- Price Waterhouse Coopers - Russia
- Kideco Jaya Agung - Indonesia
- Carbofer General Trading SA - India
- Heidelberg Cement - Germany
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ministry of Mines - Canada
- Ceylon Electricity Board - Sri Lanka
- PNOC Exploration Corporation - Philippines
- Sinarmas Energy and Mining - Indonesia
- The State Trading Corporation of India Ltd
- Borneo Indobara - Indonesia
- Bhatia International Limited - India
- Ministry of Finance - Indonesia
- Sree Jayajothi Cements Limited - India
- Kapuas Tunggal Persada - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Coal and Oil Company - UAE
- Savvy Resources Ltd - HongKong
- San Jose City I Power Corp, Philippines
- Ministry of Transport, Egypt
- Central Electricity Authority - India
- Metalloyd Limited - United Kingdom
- GAC Shipping (India) Pvt Ltd
- PowerSource Philippines DevCo
- VISA Power Limited - India
- Energy Development Corp, Philippines
- Krishnapatnam Port Company Ltd. - India
- White Energy Company Limited
- Mercuria Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Barasentosa Lestari - Indonesia
- Wilmar Investment Holdings
- IHS Mccloskey Coal Group - USA
- Bhoruka Overseas - Indonesia
- Energy Link Ltd, New Zealand
- Mjunction Services Limited - India
- Makarim & Taira - Indonesia
- Agrawal Coal Company - India
- Eastern Coal Council - USA
- Kalimantan Lumbung Energi - Indonesia
- Tata Chemicals Ltd - India
- Mintek Dendrill Indonesia
- Siam City Cement - Thailand
- Port Waratah Coal Services - Australia
- Larsen & Toubro Limited - India
- Indian Oil Corporation Limited
- Antam Resourcindo - Indonesia
- CNBM International Corporation - China
- Singapore Mercantile Exchange
- Intertek Mineral Services - Indonesia
- Chettinad Cement Corporation Ltd - India
- Sical Logistics Limited - India
- Gujarat Electricity Regulatory Commission - India
- SN Aboitiz Power Inc, Philippines
- Sindya Power Generating Company Private Ltd
- Ambuja Cements Ltd - India
- Eastern Energy - Thailand
- Latin American Coal - Colombia
- Independent Power Producers Association of India
- SMC Global Power, Philippines
- Alfred C Toepfer International GmbH - Germany
- Jorong Barutama Greston.PT - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Economic Council, Georgia
- Baramulti Group, Indonesia
- Dalmia Cement Bharat India
- South Luzon Thermal Energy Corporation
- Mercator Lines Limited - India
- Global Coal Blending Company Limited - Australia
- Videocon Industries ltd - India
- Ind-Barath Power Infra Limited - India
- Electricity Authority, New Zealand
- Samtan Co., Ltd - South Korea
- Aboitiz Power Corporation - Philippines
- Karaikal Port Pvt Ltd - India
- India Bulls Power Limited - India
- Sakthi Sugars Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Directorate Of Revenue Intelligence - India
- Sojitz Corporation - Japan
- Coalindo Energy - Indonesia
- Chamber of Mines of South Africa
- PetroVietnam Power Coal Import and Supply Company
- Parry Sugars Refinery, India
- Anglo American - United Kingdom
- Bharathi Cement Corporation - India
- Kobexindo Tractors - Indoneisa
- TNB Fuel Sdn Bhd - Malaysia
- GMR Energy Limited - India
- Lanco Infratech Ltd - India
- Grasim Industreis Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- ASAPP Information Group - India
- IEA Clean Coal Centre - UK
- Uttam Galva Steels Limited - India
- Georgia Ports Authority, United States
- ICICI Bank Limited - India
- Electricity Generating Authority of Thailand
- Banpu Public Company Limited - Thailand
- Romanian Commodities Exchange
- Parliament of New Zealand
- Straits Asia Resources Limited - Singapore
- Jaiprakash Power Ventures ltd
- TeaM Sual Corporation - Philippines
- Goldman Sachs - Singapore
- International Coal Ventures Pvt Ltd - India
- GVK Power & Infra Limited - India
- Globalindo Alam Lestari - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- OPG Power Generation Pvt Ltd - India
- Indonesian Coal Mining Association
- Standard Chartered Bank - UAE
- Interocean Group of Companies - India
- Bulk Trading Sa - Switzerland
- Australian Commodity Traders Exchange
- Asmin Koalindo Tuhup - Indonesia
- Bayan Resources Tbk. - Indonesia
- Orica Mining Services - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Cement Manufacturers Association - India
- Star Paper Mills Limited - India
- Malabar Cements Ltd - India
- Bukit Baiduri Energy - Indonesia
- Kumho Petrochemical, South Korea
- Timah Investasi Mineral - Indoneisa
- Africa Commodities Group - South Africa
- Holcim Trading Pte Ltd - Singapore
- Trasteel International SA, Italy
- Oldendorff Carriers - Singapore
- Commonwealth Bank - Australia
- CIMB Investment Bank - Malaysia
- Cigading International Bulk Terminal - Indonesia
- Indian Energy Exchange, India
- PTC India Limited - India
- Toyota Tsusho Corporation, Japan
- Xindia Steels Limited - India
- Australian Coal Association
- Central Java Power - Indonesia
- Semirara Mining Corp, Philippines
- Rio Tinto Coal - Australia
- Global Green Power PLC Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Power Finance Corporation Ltd., India
- Indogreen Group - Indonesia
- Tamil Nadu electricity Board
- Kaltim Prima Coal - Indonesia
- Indika Energy - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Pendopo Energi Batubara - Indonesia
- Formosa Plastics Group - Taiwan
- Petrochimia International Co. Ltd.- Taiwan
- Meenaskhi Energy Private Limited - India
- Renaissance Capital - South Africa
- Essar Steel Hazira Ltd - India
- Indo Tambangraya Megah - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Deloitte Consulting - India
- Bahari Cakrawala Sebuku - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Vizag Seaport Private Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Bukit Makmur.PT - Indonesia
- Kepco SPC Power Corporation, Philippines
- Bangladesh Power Developement Board
- The University of Queensland
- Madhucon Powers Ltd - India
- Jindal Steel & Power Ltd - India
- Orica Australia Pty. Ltd.
- Posco Energy - South Korea
- London Commodity Brokers - England
- Maheswari Brothers Coal Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Altura Mining Limited, Indonesia
- Meralco Power Generation, Philippines
- Edison Trading Spa - Italy
- Bhushan Steel Limited - India
- Siam City Cement PLC, Thailand
- MS Steel International - UAE
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