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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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Tuesday, 04 September 18
SUPRAMAX: THE ASIAN SECTOR REMAINED ACTIVE WITH RATES STILL FIRM ESPECIALLY IN SE ASIA - BALTIC BRIEFING
Capesize
A turnaround in fortunes for the big ships, with a few slower days in the market. A build-up of tonnage and a lack of Brazil cargoes r ...
Thursday, 30 August 18
SUPRAMAX: CIS COAL TO FAR EAST WENT AT MID TENS AND TO SE ASIA AT CA USD 8000 - FEARNLEYS
Capesize
There was a slow start this week with holiday in UK on Monday. The index has been slowly coming off since then; The C5 route has seen ...
Wednesday, 29 August 18
MID-YEAR FY19 POWER OUTLOOK: IMPORTED COAL REQUIREMENT TO INCREASE DURING REMAINING FY19: IND-RA
India Ratings and Research (Ind-Ra) has maintained a stable-to-negative outlook on the Indian power sector for the remaining FY19, despite a rise i ...
Wednesday, 29 August 18
IMPACT ON CHARTERPARTIES - TIME TO ACT NOW : NORTH P&I CLUB
KNOWLEDGE TO ELEVATE
The challenges introduced by the global sulphur cap are not exclusively technical. The new limits are likely to impact co ...
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 ...
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Showing 1631 to 1635 news of total 6871 |
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- Trasteel International SA, Italy
- Deloitte Consulting - India
- International Coal Ventures Pvt Ltd - India
- Uttam Galva Steels Limited - India
- PTC India Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Independent Power Producers Association of India
- Sindya Power Generating Company Private Ltd
- Indika Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- IHS Mccloskey Coal Group - USA
- Singapore Mercantile Exchange
- Samtan Co., Ltd - South Korea
- Interocean Group of Companies - India
- Aboitiz Power Corporation - Philippines
- CIMB Investment Bank - Malaysia
- PowerSource Philippines DevCo
- Port Waratah Coal Services - Australia
- AsiaOL BioFuels Corp., Philippines
- SN Aboitiz Power Inc, Philippines
- Coal and Oil Company - UAE
- Metalloyd Limited - United Kingdom
- Kartika Selabumi Mining - Indonesia
- Mintek Dendrill Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Global Coal Blending Company Limited - Australia
- Sinarmas Energy and Mining - Indonesia
- Marubeni Corporation - India
- Merrill Lynch Commodities Europe
- Sakthi Sugars Limited - India
- VISA Power Limited - India
- Tamil Nadu electricity Board
- Pendopo Energi Batubara - Indonesia
- Sree Jayajothi Cements Limited - India
- Banpu Public Company Limited - Thailand
- Central Electricity Authority - India
- ICICI Bank Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Star Paper Mills Limited - India
- SMG Consultants - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Indonesian Coal Mining Association
- Miang Besar Coal Terminal - Indonesia
- India Bulls Power Limited - India
- Mjunction Services Limited - India
- Standard Chartered Bank - UAE
- Australian Coal Association
- South Luzon Thermal Energy Corporation
- Kumho Petrochemical, South Korea
- Leighton Contractors Pty Ltd - Australia
- Goldman Sachs - Singapore
- Price Waterhouse Coopers - Russia
- Meralco Power Generation, Philippines
- OPG Power Generation Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Wilmar Investment Holdings
- Power Finance Corporation Ltd., India
- TNB Fuel Sdn Bhd - Malaysia
- Borneo Indobara - Indonesia
- Straits Asia Resources Limited - Singapore
- Alfred C Toepfer International GmbH - Germany
- Maharashtra Electricity Regulatory Commission - India
- MS Steel International - UAE
- Indo Tambangraya Megah - Indonesia
- Anglo American - United Kingdom
- IEA Clean Coal Centre - UK
- Kalimantan Lumbung Energi - Indonesia
- Gujarat Sidhee Cement - India
- Latin American Coal - Colombia
- Simpson Spence & Young - Indonesia
- Australian Commodity Traders Exchange
- Jorong Barutama Greston.PT - Indonesia
- Global Business Power Corporation, Philippines
- Semirara Mining Corp, Philippines
- Antam Resourcindo - Indonesia
- Cigading International Bulk Terminal - Indonesia
- The Treasury - Australian Government
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Jindal Steel & Power Ltd - India
- Coalindo Energy - Indonesia
- Petron Corporation, Philippines
- Indian Energy Exchange, India
- Parry Sugars Refinery, India
- GAC Shipping (India) Pvt Ltd
- Georgia Ports Authority, United States
- Kapuas Tunggal Persada - Indonesia
- GMR Energy Limited - India
- Bhushan Steel Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Bharathi Cement Corporation - India
- Ambuja Cements Ltd - India
- Coastal Gujarat Power Limited - India
- Siam City Cement PLC, Thailand
- Bhoruka Overseas - Indonesia
- White Energy Company Limited
- Rashtriya Ispat Nigam Limited - India
- Salva Resources Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Ind-Barath Power Infra Limited - India
- Kideco Jaya Agung - Indonesia
- Kaltim Prima Coal - Indonesia
- Indogreen Group - Indonesia
- Sical Logistics Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Altura Mining Limited, Indonesia
- Riau Bara Harum - Indonesia
- Wood Mackenzie - Singapore
- Africa Commodities Group - South Africa
- Globalindo Alam Lestari - Indonesia
- Ministry of Transport, Egypt
- The State Trading Corporation of India Ltd
- GVK Power & Infra Limited - India
- Mercuria Energy - Indonesia
- Cement Manufacturers Association - India
- SMC Global Power, Philippines
- ASAPP Information Group - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Attock Cement Pakistan Limited
- Romanian Commodities Exchange
- TeaM Sual Corporation - Philippines
- Karaikal Port Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Semirara Mining and Power Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Ministry of Finance - Indonesia
- Oldendorff Carriers - Singapore
- London Commodity Brokers - England
- Chettinad Cement Corporation Ltd - India
- Orica Australia Pty. Ltd.
- Bangladesh Power Developement Board
- Rio Tinto Coal - Australia
- Commonwealth Bank - Australia
- Dalmia Cement Bharat India
- Electricity Generating Authority of Thailand
- Therma Luzon, Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Formosa Plastics Group - Taiwan
- Meenaskhi Energy Private Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Baramulti Group, Indonesia
- Toyota Tsusho Corporation, Japan
- Thai Mozambique Logistica
- Videocon Industries ltd - India
- PNOC Exploration Corporation - Philippines
- Siam City Cement - Thailand
- Jaiprakash Power Ventures ltd
- Larsen & Toubro Limited - India
- Electricity Authority, New Zealand
- Energy Link Ltd, New Zealand
- Manunggal Multi Energi - Indonesia
- Indian Oil Corporation Limited
- Vizag Seaport Private Limited - India
- Grasim Industreis Ltd - India
- Minerals Council of Australia
- Energy Development Corp, Philippines
- Savvy Resources Ltd - HongKong
- Intertek Mineral Services - Indonesia
- Vedanta Resources Plc - India
- Barasentosa Lestari - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- PetroVietnam Power Coal Import and Supply Company
- Kepco SPC Power Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Sarangani Energy Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Agrawal Coal Company - India
- Tata Chemicals Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Edison Trading Spa - Italy
- Eastern Coal Council - USA
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mercator Lines Limited - India
- McConnell Dowell - Australia
- Billiton Holdings Pty Ltd - Australia
- Kobexindo Tractors - Indoneisa
- Chamber of Mines of South Africa
- Economic Council, Georgia
- European Bulk Services B.V. - Netherlands
- Essar Steel Hazira Ltd - India
- Eastern Energy - Thailand
- Medco Energi Mining Internasional
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- New Zealand Coal & Carbon
- Binh Thuan Hamico - Vietnam
- Holcim Trading Pte Ltd - Singapore
- LBH Netherlands Bv - Netherlands
- Lanco Infratech Ltd - India
- San Jose City I Power Corp, Philippines
- Directorate Of Revenue Intelligence - India
- Aditya Birla Group - India
- Gujarat Mineral Development Corp Ltd - India
- Makarim & Taira - Indonesia
- Madhucon Powers Ltd - India
- Thiess Contractors Indonesia
- Ministry of Mines - Canada
- Bukit Baiduri Energy - Indonesia
- Orica Mining Services - Indonesia
- Bhatia International Limited - India
- Planning Commission, India
- Posco Energy - South Korea
- Renaissance Capital - South Africa
- CNBM International Corporation - China
- Bulk Trading Sa - Switzerland
- Sojitz Corporation - Japan
- GN Power Mariveles Coal Plant, Philippines
- Central Java Power - Indonesia
- Malabar Cements Ltd - India
- The University of Queensland
- Heidelberg Cement - Germany
- Xindia Steels Limited - India
- Global Green Power PLC Corporation, Philippines
- Carbofer General Trading SA - India
- Parliament of New Zealand
- Iligan Light & Power Inc, Philippines
- Timah Investasi Mineral - Indoneisa
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