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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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Thursday, 24 May 18
SUPRAS FIXING AROUND USD 15000 FOR INDO TO CHINA COAL TRIPS - FEARNLEYS
Capesize
Both the physical and the paper market have dropped sharply the last couple of days on the back of a lack of fresh cargoes and a growing ...
Thursday, 24 May 18
FITCH: FALLING COAL INVESTMENT TO SUPPORT ASIAN PRICES
Press Release: The long-term outlook for the Asian thermal coal prices is improving, amid rising regional demand and falling mining investment, whi ...
Thursday, 24 May 18
BEIJING ORDERS UTILITIES, MINERS TO HELP COOL RED-HOT COAL MARKET: SOURCES - REUTERS
China’s state planner ordered utilities this week to stop stockpiling thermal coal and told miners to slash prices, two sources familiar with ...
Wednesday, 23 May 18
TANKER MARKET INSIGHT - TIMOS PAPADIMITRIOU
In the last six months we have seen more than 110 reported tanker transactions involving tonnage larger than 32k dwt and younger than 18 years old. ...
Friday, 18 May 18
AFTER COAL, INDONESIAN GOVERNMENT PUSHES DMO ON GAS FOR ELECTRICITY
After introducing its domestic market obligation (DMO) policy for coal on March 12, the government is going forward with its plan to introduce a DM ...
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Showing 1716 to 1720 news of total 6871 |
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- Krishnapatnam Port Company Ltd. - India
- Grasim Industreis Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Wood Mackenzie - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Cement Manufacturers Association - India
- GAC Shipping (India) Pvt Ltd
- Indonesian Coal Mining Association
- Indogreen Group - Indonesia
- Edison Trading Spa - Italy
- CIMB Investment Bank - Malaysia
- Coalindo Energy - Indonesia
- Parry Sugars Refinery, India
- Sarangani Energy Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- South Luzon Thermal Energy Corporation
- MS Steel International - UAE
- Neyveli Lignite Corporation Ltd, - India
- Siam City Cement - Thailand
- Heidelberg Cement - Germany
- Iligan Light & Power Inc, Philippines
- Energy Development Corp, Philippines
- Miang Besar Coal Terminal - Indonesia
- Sojitz Corporation - Japan
- Uttam Galva Steels Limited - India
- Global Coal Blending Company Limited - Australia
- Alfred C Toepfer International GmbH - Germany
- Chamber of Mines of South Africa
- Chettinad Cement Corporation Ltd - India
- ASAPP Information Group - India
- Oldendorff Carriers - Singapore
- Jorong Barutama Greston.PT - Indonesia
- Makarim & Taira - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Kepco SPC Power Corporation, Philippines
- Goldman Sachs - Singapore
- Thiess Contractors Indonesia
- Antam Resourcindo - Indonesia
- Merrill Lynch Commodities Europe
- Rashtriya Ispat Nigam Limited - India
- Medco Energi Mining Internasional
- Riau Bara Harum - Indonesia
- Ministry of Finance - Indonesia
- Bukit Makmur.PT - Indonesia
- Dalmia Cement Bharat India
- Bulk Trading Sa - Switzerland
- Australian Commodity Traders Exchange
- Bayan Resources Tbk. - Indonesia
- Anglo American - United Kingdom
- Sical Logistics Limited - India
- Kartika Selabumi Mining - Indonesia
- Minerals Council of Australia
- Siam City Cement PLC, Thailand
- Singapore Mercantile Exchange
- Essar Steel Hazira Ltd - India
- Interocean Group of Companies - India
- Timah Investasi Mineral - Indoneisa
- Maheswari Brothers Coal Limited - India
- AsiaOL BioFuels Corp., Philippines
- Eastern Energy - Thailand
- LBH Netherlands Bv - Netherlands
- Marubeni Corporation - India
- SN Aboitiz Power Inc, Philippines
- Posco Energy - South Korea
- Intertek Mineral Services - Indonesia
- Electricity Generating Authority of Thailand
- Star Paper Mills Limited - India
- Cigading International Bulk Terminal - Indonesia
- IHS Mccloskey Coal Group - USA
- Altura Mining Limited, Indonesia
- ICICI Bank Limited - India
- Indo Tambangraya Megah - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Barasentosa Lestari - Indonesia
- Vizag Seaport Private Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Mintek Dendrill Indonesia
- Sakthi Sugars Limited - India
- Gujarat Electricity Regulatory Commission - India
- Agrawal Coal Company - India
- Coal and Oil Company - UAE
- Kobexindo Tractors - Indoneisa
- Australian Coal Association
- Ind-Barath Power Infra Limited - India
- Latin American Coal - Colombia
- Renaissance Capital - South Africa
- GVK Power & Infra Limited - India
- Ministry of Transport, Egypt
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Parliament of New Zealand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Pipit Mutiara Jaya. PT, Indonesia
- Power Finance Corporation Ltd., India
- Meralco Power Generation, Philippines
- Energy Link Ltd, New Zealand
- Eastern Coal Council - USA
- Central Electricity Authority - India
- OPG Power Generation Pvt Ltd - India
- Petron Corporation, Philippines
- Wilmar Investment Holdings
- Indika Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- PTC India Limited - India
- Borneo Indobara - Indonesia
- Mercator Lines Limited - India
- GMR Energy Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Jindal Steel & Power Ltd - India
- SMG Consultants - Indonesia
- Globalindo Alam Lestari - Indonesia
- Bharathi Cement Corporation - India
- Lanco Infratech Ltd - India
- San Jose City I Power Corp, Philippines
- Indian Oil Corporation Limited
- Bhoruka Overseas - Indonesia
- Toyota Tsusho Corporation, Japan
- PNOC Exploration Corporation - Philippines
- Kumho Petrochemical, South Korea
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mjunction Services Limited - India
- Planning Commission, India
- Savvy Resources Ltd - HongKong
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Videocon Industries ltd - India
- Sindya Power Generating Company Private Ltd
- Tata Chemicals Ltd - India
- Global Green Power PLC Corporation, Philippines
- Price Waterhouse Coopers - Russia
- Global Business Power Corporation, Philippines
- The Treasury - Australian Government
- VISA Power Limited - India
- Independent Power Producers Association of India
- Ceylon Electricity Board - Sri Lanka
- Bhatia International Limited - India
- Deloitte Consulting - India
- Ministry of Mines - Canada
- PetroVietnam Power Coal Import and Supply Company
- Attock Cement Pakistan Limited
- Straits Asia Resources Limited - Singapore
- Indian Energy Exchange, India
- Africa Commodities Group - South Africa
- Petrochimia International Co. Ltd.- Taiwan
- Commonwealth Bank - Australia
- New Zealand Coal & Carbon
- Jaiprakash Power Ventures ltd
- Directorate General of MIneral and Coal - Indonesia
- Kaltim Prima Coal - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Samtan Co., Ltd - South Korea
- TeaM Sual Corporation - Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Binh Thuan Hamico - Vietnam
- Orica Australia Pty. Ltd.
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Ambuja Cements Ltd - India
- European Bulk Services B.V. - Netherlands
- Baramulti Group, Indonesia
- Economic Council, Georgia
- Tamil Nadu electricity Board
- Karaikal Port Pvt Ltd - India
- Carbofer General Trading SA - India
- Vedanta Resources Plc - India
- IEA Clean Coal Centre - UK
- Larsen & Toubro Limited - India
- Semirara Mining and Power Corporation, Philippines
- PowerSource Philippines DevCo
- Salva Resources Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Rio Tinto Coal - Australia
- White Energy Company Limited
- Semirara Mining Corp, Philippines
- Simpson Spence & Young - Indonesia
- SMC Global Power, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- The University of Queensland
- Kalimantan Lumbung Energi - Indonesia
- Trasteel International SA, Italy
- Xindia Steels Limited - India
- Coastal Gujarat Power Limited - India
- Bhushan Steel Limited - India
- The State Trading Corporation of India Ltd
- Port Waratah Coal Services - Australia
- Gujarat Sidhee Cement - India
- Manunggal Multi Energi - Indonesia
- Formosa Plastics Group - Taiwan
- Electricity Authority, New Zealand
- Karbindo Abesyapradhi - Indoneisa
- Meenaskhi Energy Private Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Standard Chartered Bank - UAE
- Central Java Power - Indonesia
- Sree Jayajothi Cements Limited - India
- CNBM International Corporation - China
- Romanian Commodities Exchange
- Kideco Jaya Agung - Indonesia
- Metalloyd Limited - United Kingdom
- Mercuria Energy - Indonesia
- Pendopo Energi Batubara - Indonesia
- McConnell Dowell - Australia
- Leighton Contractors Pty Ltd - Australia
- India Bulls Power Limited - India
- Malabar Cements Ltd - India
- Thai Mozambique Logistica
- Madhucon Powers Ltd - India
- Kapuas Tunggal Persada - Indonesia
- London Commodity Brokers - England
- Bangladesh Power Developement Board
- Orica Mining Services - Indonesia
- Georgia Ports Authority, United States
- Aditya Birla Group - India
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