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Wednesday, 03 October 18
SHIPPING MARKET INSIGHT - KATERINA RESTIS
 The bunker fuel supply and availability landscape is close to its transformation with the enforcement of the IMO’s global 0.5% fuel Sulphur content cap regulation from 1st of January, 2020. Shipowners will have to choose between available options for them to comply with the regulation, while refiners will have to make suitable changes to refinery configuration and production in response to market demand. Thus far all parties will have to decide on the most efficient and appropriate solution that will suit their operations and allow them to remain commercially sustainable in the long run.
The swipe from the present 3.5% to 0.5% Sulphur content marine fuel will practically be an overnight shift as refineries would need to continue production and supply of up to 3.5% marine fuel until the day regulation requirement kicks in. Global refining will face enormous logistics, storage and delivery issues, while ships will have to clean out fuel systems to avoid Sulphur contamination. Thus, there is a risk such quick swing to lead to a period of product shortages and inflated marine oil prices. According to data reported on average up to 2017, the shipping industry was consuming approximately 3.2m barrels p/d of HFO and 800k p/d of MGO. Accordingly, from 2020 onwards it is estimated that proportion will alter to 700k p/d of HFO to 3.4m barrels p/d of MGO. Obviously, the use of compliant Sulphur oil products will be the expensive solution for ship-owners that will either absorb the cost or possibly operators will try to pass the cost to Charterers via increased freight rates.
Simple refineries that produce a substantial share of their crude oil into HFO may face margin pressures, while complex refineries with greater infrastructures may potentially boost margins with larger production of low Sulphur products. IEA has stated that if refiners ran at similar utilization rates as of today, it would be unlikely to produce the essential volumes of gas oil. Particularly, if quantity rises to meet the required gas oil volumes, margins would be inevitably affected by shrinking profits.
Overall, oil majors and refineries will try to back up the bunker fuel demand ascending from the new regulation through several ways. Refiners may elevate ULSFO production by extracting low Sulphur fuel streams that are currently blended into LSFO or HSFO will be made available to the market as ULS FO. ExxonMobil, for example has introduced a product, Heavy Distillate Marine ECA 50 that can be consumed onboard like HFO and has only 0.1% Sulphur content. Furthermore, refiners have an issue of handling their surplus residue as this option comes with higher risk on returns of investment. This is due to the fact that oil demand is founded on shippers’ uptake of alternative options such as scrubber installation and LNG bunkering. Refiners can raise LNG bunker supplies in major bunkering hubs. In Singapore, Shell and ExxonMobil are working with Maritime and Port Authority of Singapore to supply LNG as fuel.
To sum up, in the scenario that refineries restrict the availability of HFO on expected higher margins from selling MGO, then vessels fitted with scrubbers might face challenges in relation to adequate supply of HFO. On the other hand, refineries worry that any surge in the use of MGO would head to excess quantity of HFO. For sure refineries are not rushing to big investments to change production set ups while ship-owners are still considering their options. It’s a dilemma for all parties and a puzzle to be solved.
By Katerina Restis
Tanker Chartering
Compiled by:
Intermodal Research & Valuations
Analysts:
Ms Eva Tzima
George Panagopoulos
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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- Altura Mining Limited, Indonesia
- Rashtriya Ispat Nigam Limited - India
- Thiess Contractors Indonesia
- Latin American Coal - Colombia
- LBH Netherlands Bv - Netherlands
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indian Energy Exchange, India
- The University of Queensland
- Salva Resources Pvt Ltd - India
- Independent Power Producers Association of India
- Straits Asia Resources Limited - Singapore
- Parry Sugars Refinery, India
- Metalloyd Limited - United Kingdom
- Essar Steel Hazira Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Sree Jayajothi Cements Limited - India
- Economic Council, Georgia
- Power Finance Corporation Ltd., India
- Port Waratah Coal Services - Australia
- Bhatia International Limited - India
- Coal and Oil Company - UAE
- Meralco Power Generation, Philippines
- Bukit Baiduri Energy - Indonesia
- Kumho Petrochemical, South Korea
- Malabar Cements Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Bayan Resources Tbk. - Indonesia
- Siam City Cement - Thailand
- Ministry of Mines - Canada
- Cigading International Bulk Terminal - Indonesia
- Jindal Steel & Power Ltd - India
- Interocean Group of Companies - India
- Sojitz Corporation - Japan
- PTC India Limited - India
- Ind-Barath Power Infra Limited - India
- Vedanta Resources Plc - India
- Uttam Galva Steels Limited - India
- SMG Consultants - Indonesia
- Kideco Jaya Agung - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- SN Aboitiz Power Inc, Philippines
- Deloitte Consulting - India
- Romanian Commodities Exchange
- Electricity Generating Authority of Thailand
- Chamber of Mines of South Africa
- Bhushan Steel Limited - India
- Goldman Sachs - Singapore
- Electricity Authority, New Zealand
- CNBM International Corporation - China
- Bharathi Cement Corporation - India
- Dalmia Cement Bharat India
- Pendopo Energi Batubara - Indonesia
- VISA Power Limited - India
- Vizag Seaport Private Limited - India
- Bukit Makmur.PT - Indonesia
- Planning Commission, India
- Savvy Resources Ltd - HongKong
- Edison Trading Spa - Italy
- Indogreen Group - Indonesia
- Xindia Steels Limited - India
- Timah Investasi Mineral - Indoneisa
- Standard Chartered Bank - UAE
- Petron Corporation, Philippines
- White Energy Company Limited
- Indika Energy - Indonesia
- Commonwealth Bank - Australia
- Agrawal Coal Company - India
- Thai Mozambique Logistica
- European Bulk Services B.V. - Netherlands
- Aboitiz Power Corporation - Philippines
- Medco Energi Mining Internasional
- Mintek Dendrill Indonesia
- Kepco SPC Power Corporation, Philippines
- ICICI Bank Limited - India
- New Zealand Coal & Carbon
- Videocon Industries ltd - India
- Anglo American - United Kingdom
- Offshore Bulk Terminal Pte Ltd, Singapore
- Binh Thuan Hamico - Vietnam
- Gujarat Electricity Regulatory Commission - India
- Trasteel International SA, Italy
- Bukit Asam (Persero) Tbk - Indonesia
- Lanco Infratech Ltd - India
- Indian Oil Corporation Limited
- TNB Fuel Sdn Bhd - Malaysia
- Mercuria Energy - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- IHS Mccloskey Coal Group - USA
- Kalimantan Lumbung Energi - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Cement Manufacturers Association - India
- International Coal Ventures Pvt Ltd - India
- Semirara Mining Corp, Philippines
- AsiaOL BioFuels Corp., Philippines
- Maheswari Brothers Coal Limited - India
- Bulk Trading Sa - Switzerland
- Karaikal Port Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Ceylon Electricity Board - Sri Lanka
- San Jose City I Power Corp, Philippines
- Wood Mackenzie - Singapore
- Sical Logistics Limited - India
- Eastern Energy - Thailand
- Attock Cement Pakistan Limited
- Renaissance Capital - South Africa
- Sindya Power Generating Company Private Ltd
- Billiton Holdings Pty Ltd - Australia
- Mercator Lines Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Manunggal Multi Energi - Indonesia
- Sakthi Sugars Limited - India
- Jaiprakash Power Ventures ltd
- SMC Global Power, Philippines
- ASAPP Information Group - India
- Coastal Gujarat Power Limited - India
- Minerals Council of Australia
- Borneo Indobara - Indonesia
- Tata Chemicals Ltd - India
- Merrill Lynch Commodities Europe
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- CIMB Investment Bank - Malaysia
- Siam City Cement PLC, Thailand
- McConnell Dowell - Australia
- Miang Besar Coal Terminal - Indonesia
- GMR Energy Limited - India
- Rio Tinto Coal - Australia
- Indo Tambangraya Megah - Indonesia
- The State Trading Corporation of India Ltd
- Leighton Contractors Pty Ltd - Australia
- OPG Power Generation Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Directorate Of Revenue Intelligence - India
- Africa Commodities Group - South Africa
- Energy Link Ltd, New Zealand
- Jorong Barutama Greston.PT - Indonesia
- Orica Australia Pty. Ltd.
- Indonesian Coal Mining Association
- Kaltim Prima Coal - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Energy Development Corp, Philippines
- Singapore Mercantile Exchange
- India Bulls Power Limited - India
- Intertek Mineral Services - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Mjunction Services Limited - India
- Global Green Power PLC Corporation, Philippines
- Makarim & Taira - Indonesia
- Eastern Coal Council - USA
- Tamil Nadu electricity Board
- Globalindo Alam Lestari - Indonesia
- Bhoruka Overseas - Indonesia
- Central Java Power - Indonesia
- Global Coal Blending Company Limited - Australia
- Chettinad Cement Corporation Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Gujarat Sidhee Cement - India
- Posco Energy - South Korea
- Kobexindo Tractors - Indoneisa
- Wilmar Investment Holdings
- The Treasury - Australian Government
- Samtan Co., Ltd - South Korea
- Coalindo Energy - Indonesia
- Antam Resourcindo - Indonesia
- Formosa Plastics Group - Taiwan
- GAC Shipping (India) Pvt Ltd
- Central Electricity Authority - India
- IEA Clean Coal Centre - UK
- Oldendorff Carriers - Singapore
- Meenaskhi Energy Private Limited - India
- Madhucon Powers Ltd - India
- Riau Bara Harum - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- South Luzon Thermal Energy Corporation
- Sarangani Energy Corporation, Philippines
- Ministry of Transport, Egypt
- GVK Power & Infra Limited - India
- Grasim Industreis Ltd - India
- Larsen & Toubro Limited - India
- Ambuja Cements Ltd - India
- Marubeni Corporation - India
- Parliament of New Zealand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kapuas Tunggal Persada - Indonesia
- Australian Commodity Traders Exchange
- MS Steel International - UAE
- Bangladesh Power Developement Board
- Ministry of Finance - Indonesia
- Carbofer General Trading SA - India
- Price Waterhouse Coopers - Russia
- PetroVietnam Power Coal Import and Supply Company
- Therma Luzon, Inc, Philippines
- Georgia Ports Authority, United States
- PowerSource Philippines DevCo
- Aditya Birla Group - India
- Semirara Mining and Power Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Toyota Tsusho Corporation, Japan
- Simpson Spence & Young - Indonesia
- London Commodity Brokers - England
- Krishnapatnam Port Company Ltd. - India
- Heidelberg Cement - Germany
- Orica Mining Services - Indonesia
- Banpu Public Company Limited - Thailand
- Kartika Selabumi Mining - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Global Business Power Corporation, Philippines
- Baramulti Group, Indonesia
- Star Paper Mills Limited - India
- Australian Coal Association
- Neyveli Lignite Corporation Ltd, - India
- TeaM Sual Corporation - Philippines
- Barasentosa Lestari - Indonesia
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