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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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Friday, 29 June 18
THE LBH GROUP AND RHENUS PLAN TO ESTABLISH A JOINT COMPANY
Press Release: The port services provider, the LBH Group, and the logistics specialist Rhenus, are planning to cooperate closely in the European in ...
Friday, 29 June 18
SUPRAMAX: INDO / CHINA COAL ROUNDS PAYING AROUND USD HIGH 11000 - FEARNLYS
Capesize
Its been an interesting week with a strong demand for ships out of Brazil, making C3 rates remain around USD 19 pmt said Fearnlys in i ...
Friday, 29 June 18
JAPAN'S TOHOKU ELEC, GLENCORE ABANDON APRIL-MARCH COAL CONTRACT TALKS - REUTERS
Japan’s Tohoku Electric Power Co Inc and Glencore Plc have abandoned talks on annual thermal coal supplies after failing to reach an agreemen ...
Wednesday, 27 June 18
SHIPPING MARKET INSIGHT - APOSTOLOS ROMPOPOULOS
After the abolishment of the trade embargo against Iran, there was a lot of optimism from the country’s side, as after quite some time a numb ...
Tuesday, 26 June 18
"ALWAYS ACCESSIBLE": ARRIVAL, DEPARTURE OR BOTH? - INCE & CO
KNOWLEDGE TO ELEVATE
An “always accessible” berth warranty is often used by an owner to transfer the risk of delays in berthing to ...
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Showing 1686 to 1690 news of total 6871 |
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- Uttam Galva Steels Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Toyota Tsusho Corporation, Japan
- Simpson Spence & Young - Indonesia
- Vizag Seaport Private Limited - India
- Ind-Barath Power Infra Limited - India
- CNBM International Corporation - China
- Intertek Mineral Services - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Binh Thuan Hamico - Vietnam
- Semirara Mining and Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Bharathi Cement Corporation - India
- Cigading International Bulk Terminal - Indonesia
- LBH Netherlands Bv - Netherlands
- PTC India Limited - India
- Krishnapatnam Port Company Ltd. - India
- Barasentosa Lestari - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Banpu Public Company Limited - Thailand
- Commonwealth Bank - Australia
- ASAPP Information Group - India
- Ministry of Transport, Egypt
- Maheswari Brothers Coal Limited - India
- Parliament of New Zealand
- The Treasury - Australian Government
- Bahari Cakrawala Sebuku - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Vedanta Resources Plc - India
- Attock Cement Pakistan Limited
- Altura Mining Limited, Indonesia
- Pendopo Energi Batubara - Indonesia
- Larsen & Toubro Limited - India
- Independent Power Producers Association of India
- Africa Commodities Group - South Africa
- Price Waterhouse Coopers - Russia
- Indian Energy Exchange, India
- Bayan Resources Tbk. - Indonesia
- Orica Mining Services - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Bukit Baiduri Energy - Indonesia
- Rio Tinto Coal - Australia
- PowerSource Philippines DevCo
- Posco Energy - South Korea
- Timah Investasi Mineral - Indoneisa
- Economic Council, Georgia
- Dalmia Cement Bharat India
- Lanco Infratech Ltd - India
- Merrill Lynch Commodities Europe
- Bukit Makmur.PT - Indonesia
- Port Waratah Coal Services - Australia
- White Energy Company Limited
- Indika Energy - Indonesia
- Siam City Cement PLC, Thailand
- Ministry of Mines - Canada
- Rashtriya Ispat Nigam Limited - India
- Ambuja Cements Ltd - India
- CIMB Investment Bank - Malaysia
- Medco Energi Mining Internasional
- Samtan Co., Ltd - South Korea
- Petron Corporation, Philippines
- Madhucon Powers Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Borneo Indobara - Indonesia
- Indonesian Coal Mining Association
- Parry Sugars Refinery, India
- European Bulk Services B.V. - Netherlands
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Grasim Industreis Ltd - India
- Coal and Oil Company - UAE
- Global Coal Blending Company Limited - Australia
- Siam City Cement - Thailand
- Mercuria Energy - Indonesia
- Central Electricity Authority - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Savvy Resources Ltd - HongKong
- Minerals Council of Australia
- GMR Energy Limited - India
- Latin American Coal - Colombia
- Makarim & Taira - Indonesia
- New Zealand Coal & Carbon
- OPG Power Generation Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Sarangani Energy Corporation, Philippines
- Edison Trading Spa - Italy
- Therma Luzon, Inc, Philippines
- Orica Australia Pty. Ltd.
- Singapore Mercantile Exchange
- Directorate General of MIneral and Coal - Indonesia
- IHS Mccloskey Coal Group - USA
- Petrochimia International Co. Ltd.- Taiwan
- Coalindo Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Sical Logistics Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Neyveli Lignite Corporation Ltd, - India
- Xindia Steels Limited - India
- Aboitiz Power Corporation - Philippines
- Jaiprakash Power Ventures ltd
- Sojitz Corporation - Japan
- Bukit Asam (Persero) Tbk - Indonesia
- Energy Development Corp, Philippines
- Standard Chartered Bank - UAE
- Thiess Contractors Indonesia
- Thai Mozambique Logistica
- Planning Commission, India
- Power Finance Corporation Ltd., India
- Ceylon Electricity Board - Sri Lanka
- Malabar Cements Ltd - India
- MS Steel International - UAE
- Indo Tambangraya Megah - Indonesia
- IEA Clean Coal Centre - UK
- Carbofer General Trading SA - India
- Renaissance Capital - South Africa
- Sindya Power Generating Company Private Ltd
- GVK Power & Infra Limited - India
- Directorate Of Revenue Intelligence - India
- Australian Commodity Traders Exchange
- Semirara Mining Corp, Philippines
- Kepco SPC Power Corporation, Philippines
- Meralco Power Generation, Philippines
- Manunggal Multi Energi - Indonesia
- London Commodity Brokers - England
- Riau Bara Harum - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Agrawal Coal Company - India
- International Coal Ventures Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- VISA Power Limited - India
- McConnell Dowell - Australia
- Trasteel International SA, Italy
- Anglo American - United Kingdom
- Videocon Industries ltd - India
- Cement Manufacturers Association - India
- Gujarat Sidhee Cement - India
- Bulk Trading Sa - Switzerland
- Formosa Plastics Group - Taiwan
- Tata Chemicals Ltd - India
- Heidelberg Cement - Germany
- Romanian Commodities Exchange
- San Jose City I Power Corp, Philippines
- Mjunction Services Limited - India
- SN Aboitiz Power Inc, Philippines
- Sree Jayajothi Cements Limited - India
- Wilmar Investment Holdings
- Jorong Barutama Greston.PT - Indonesia
- Kumho Petrochemical, South Korea
- TNB Fuel Sdn Bhd - Malaysia
- Indian Oil Corporation Limited
- Indogreen Group - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Chettinad Cement Corporation Ltd - India
- Coastal Gujarat Power Limited - India
- Aditya Birla Group - India
- GAC Shipping (India) Pvt Ltd
- Sakthi Sugars Limited - India
- Electricity Authority, New Zealand
- SMC Global Power, Philippines
- Kapuas Tunggal Persada - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Australian Coal Association
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Central Java Power - Indonesia
- Salva Resources Pvt Ltd - India
- Mercator Lines Limited - India
- Oldendorff Carriers - Singapore
- Electricity Generating Authority of Thailand
- Bhatia International Limited - India
- Eastern Coal Council - USA
- TeaM Sual Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- Kobexindo Tractors - Indoneisa
- Baramulti Group, Indonesia
- Kideco Jaya Agung - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Karaikal Port Pvt Ltd - India
- Georgia Ports Authority, United States
- Star Paper Mills Limited - India
- Chamber of Mines of South Africa
- Bangladesh Power Developement Board
- Bhoruka Overseas - Indonesia
- Global Green Power PLC Corporation, Philippines
- Tamil Nadu electricity Board
- SMG Consultants - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Interocean Group of Companies - India
- Maharashtra Electricity Regulatory Commission - India
- ICICI Bank Limited - India
- The University of Queensland
- Deloitte Consulting - India
- South Luzon Thermal Energy Corporation
- Antam Resourcindo - Indonesia
- Goldman Sachs - Singapore
- Leighton Contractors Pty Ltd - Australia
- Mintek Dendrill Indonesia
- Iligan Light & Power Inc, Philippines
- Global Business Power Corporation, Philippines
- Ministry of Finance - Indonesia
- Eastern Energy - Thailand
- GN Power Mariveles Coal Plant, Philippines
- PNOC Exploration Corporation - Philippines
- Marubeni Corporation - India
- Wood Mackenzie - Singapore
- Globalindo Alam Lestari - Indonesia
- Bhushan Steel Limited - India
- The State Trading Corporation of India Ltd
- Energy Link Ltd, New Zealand
- Karbindo Abesyapradhi - Indoneisa
- Kaltim Prima Coal - Indonesia
- India Bulls Power Limited - India
- Jindal Steel & Power Ltd - India
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