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Monday, 05 November 18
TIGHTER FUEL RULES COULD RAISE SHIPOWNERS' COSTS AND CAPEX - FITCH RATINGS
 More stringent fuel regulations regarding sulphur content could significantly increase global shipping companies’ operating costs and capex needs, Fitch Ratings says. This may negatively affect their credit quality unless they manage to pass these costs to customers. Many shipping companies have started implementing fuel surcharges to recover costs associated with the new sulphur cap regulation, but their ability to sustain these will depend on market fundamentals, which remain challenging.
Competitive dynamics may change in the longer term with companies that are less financially able to absorb additional costs, especially given higher oil prices, withdrawing from the market. Reduced competitive pressures could then support a better supply-demand balance and allow the remaining shipping companies to raise freight rates in a bid to recoup some of the extra costs. The change in shipping fuel consumption could also affect refineries.
International Maritime Organization rules requiring ships to use fuel with sulphur content no higher than 0.5% (compared with 3.5% currently) come into effect on 1 January 2020. This means that shipping companies need to switch to higher-quality and more expensive marine fuel, use special equipment (“scrubbers”) to reduce sulphur emissions or switch to alternative fuels, such as liquefied natural gas (LNG). The new regulation will apply globally. Sulphur Emission Control Areas were established in a limited number of sea areas in 2005 and the sulphur content limit for fuel in those areas was tightened to 0.1% in 2015.
The global shipping industry fuel cost bill could increase by up to USD60 billion a year as a result of the new rules from 2020 for a total merchant fleet of 60,000 vessels, according to Wood Mackenzie. According to Maersk Line, its additional fuel costs would be over USD2 billion with a cost for the container shipping industry as a whole of up to USD15 billion, based on the difference in price of fuel with 3.5% and 0.5% sulphur content.
Scrubbers could be a viable alternative for some companies, but require several million dollars in upfront investments for each ship. Furthermore, scrubbers’ manufacturing and installing capacity is limited to fitting only about 2,000 scrubbers by 2020, according to Norwegian bank SEB. The LNG option will also require investments to retrofit ship engines and capacity to carry high-volume LNG tanks. In addition, LNG refuelling infrastructure may not be readily available globally.
The impact of the new regulation is unlikely to be uniform across segments. Ship owners that lease out ships with fuel costs borne by the charterer will be significantly less affected than operators that cover the fuel bill themselves if fuel surcharges related to the sulphur cap are not sustained.
If a significant proportion of shipping companies opt for higher-quality, low-sulphur fuel to comply with the regulations, the balance in the oil products market, and therefore refineries, may be affected. The 4 million barrel a day marine fuel market has been absorbing residue from the refining process, so there may be a need for refineries to adjust processes if demand for heavy fuel drops.
Demand for higher-quality fuel could lead to higher prices and widen pricing differentials between low- and high-sulphur products. Refineries with a higher share of middle distillates in their output, which are required to produce low-sulphur marine fuel, will benefit from the change. Low-complexity refineries will be hit and may need to invest in upgrades to shift their output towards middle distillates.
Source: Fitch Ratings
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Sunday, 30 December 18
MAJOR LNG BUYERS' UNCONTRACTED DEMAND TO QUADRUPLE BY 2030 - WOOD MACKENZIE
Wood Mackenzie’s latest research reveals that uncontracted demand by the world’s seven largest LNG buyers could quadruple to 80 million ...
Saturday, 29 December 18
DELIVERY OF CARGO WITHOUT PRODUCTION OF THE ORIGINAL BILL OF LADING - TT CLUB
KNOWLEDGE TO ELEVATE
As the bill of lading is a document of title, a person presenting it to the carrier or its agent is ostensibly entitled t ...
Friday, 28 December 18
BIMCO 2020 SULPHUR CLAUSES: "A FAIR ALLOCATION OF RESPONSIBILITIES AND LIABILITIES'? - INCE & CO.
To assist owners and charterers to address the legal issues arising under any time charterparties, which will span the 1 January 2020 implementatio ...
Thursday, 27 December 18
DRY BULKERS SPOT FREIGHT MARKET W/E 21 DEC - ALLIED SHIPBROKING
Capesize
A negative week for the Capesize sector, as activity remained at low levels, especially in the Pacific, with rumors regarding agreed r ...
Thursday, 27 December 18
SHIPPING IS ENTERING A NEW ERA OF EVER CHALLENGING CONDITIONS - ALLIED
As we move closer to the end of the year and we look forward into New Year, we are still finding ourselves looking deep into a market outlook full ...
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Showing 1511 to 1515 news of total 6871 |
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- PowerSource Philippines DevCo
- Wilmar Investment Holdings
- Kalimantan Lumbung Energi - Indonesia
- Leighton Contractors Pty Ltd - Australia
- International Coal Ventures Pvt Ltd - India
- ICICI Bank Limited - India
- Mjunction Services Limited - India
- Bharathi Cement Corporation - India
- LBH Netherlands Bv - Netherlands
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Bayan Resources Tbk. - Indonesia
- Orica Australia Pty. Ltd.
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ministry of Transport, Egypt
- Mercuria Energy - Indonesia
- Manunggal Multi Energi - Indonesia
- Parry Sugars Refinery, India
- Tata Chemicals Ltd - India
- Posco Energy - South Korea
- Meralco Power Generation, Philippines
- Parliament of New Zealand
- Aboitiz Power Corporation - Philippines
- Star Paper Mills Limited - India
- Bulk Trading Sa - Switzerland
- Latin American Coal - Colombia
- Singapore Mercantile Exchange
- Intertek Mineral Services - Indonesia
- The State Trading Corporation of India Ltd
- Grasim Industreis Ltd - India
- IEA Clean Coal Centre - UK
- Maheswari Brothers Coal Limited - India
- Indian Energy Exchange, India
- SN Aboitiz Power Inc, Philippines
- Cement Manufacturers Association - India
- PNOC Exploration Corporation - Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Indian Oil Corporation Limited
- Krishnapatnam Port Company Ltd. - India
- Kumho Petrochemical, South Korea
- Banpu Public Company Limited - Thailand
- Gujarat Mineral Development Corp Ltd - India
- Meenaskhi Energy Private Limited - India
- Makarim & Taira - Indonesia
- Planning Commission, India
- Carbofer General Trading SA - India
- Billiton Holdings Pty Ltd - Australia
- Directorate Of Revenue Intelligence - India
- South Luzon Thermal Energy Corporation
- Straits Asia Resources Limited - Singapore
- Therma Luzon, Inc, Philippines
- Jindal Steel & Power Ltd - India
- CIMB Investment Bank - Malaysia
- Anglo American - United Kingdom
- Semirara Mining and Power Corporation, Philippines
- Aditya Birla Group - India
- India Bulls Power Limited - India
- Vizag Seaport Private Limited - India
- Sical Logistics Limited - India
- Trasteel International SA, Italy
- Ambuja Cements Ltd - India
- Energy Link Ltd, New Zealand
- Kobexindo Tractors - Indoneisa
- Chamber of Mines of South Africa
- Siam City Cement - Thailand
- Ceylon Electricity Board - Sri Lanka
- Savvy Resources Ltd - HongKong
- Jaiprakash Power Ventures ltd
- Renaissance Capital - South Africa
- Madhucon Powers Ltd - India
- Mintek Dendrill Indonesia
- Directorate General of MIneral and Coal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Price Waterhouse Coopers - Russia
- Kaltim Prima Coal - Indonesia
- Kideco Jaya Agung - Indonesia
- Iligan Light & Power Inc, Philippines
- Bhushan Steel Limited - India
- Romanian Commodities Exchange
- PetroVietnam Power Coal Import and Supply Company
- ASAPP Information Group - India
- Larsen & Toubro Limited - India
- Karaikal Port Pvt Ltd - India
- Bangladesh Power Developement Board
- Thai Mozambique Logistica
- Central Java Power - Indonesia
- Standard Chartered Bank - UAE
- Globalindo Alam Lestari - Indonesia
- Energy Development Corp, Philippines
- Australian Coal Association
- Metalloyd Limited - United Kingdom
- Baramulti Group, Indonesia
- Ind-Barath Power Infra Limited - India
- Georgia Ports Authority, United States
- Siam City Cement PLC, Thailand
- Timah Investasi Mineral - Indoneisa
- McConnell Dowell - Australia
- Gujarat Electricity Regulatory Commission - India
- Petron Corporation, Philippines
- Ministry of Mines - Canada
- Power Finance Corporation Ltd., India
- Indika Energy - Indonesia
- Oldendorff Carriers - Singapore
- Goldman Sachs - Singapore
- Commonwealth Bank - Australia
- Simpson Spence & Young - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Dalmia Cement Bharat India
- Indogreen Group - Indonesia
- Xindia Steels Limited - India
- Coal and Oil Company - UAE
- Africa Commodities Group - South Africa
- AsiaOL BioFuels Corp., Philippines
- Electricity Generating Authority of Thailand
- Coastal Gujarat Power Limited - India
- Heidelberg Cement - Germany
- Kepco SPC Power Corporation, Philippines
- Ministry of Finance - Indonesia
- GMR Energy Limited - India
- Borneo Indobara - Indonesia
- San Jose City I Power Corp, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Global Green Power PLC Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Orica Mining Services - Indonesia
- Mercator Lines Limited - India
- Port Waratah Coal Services - Australia
- European Bulk Services B.V. - Netherlands
- Maharashtra Electricity Regulatory Commission - India
- Asmin Koalindo Tuhup - Indonesia
- Minerals Council of Australia
- Gujarat Sidhee Cement - India
- New Zealand Coal & Carbon
- Toyota Tsusho Corporation, Japan
- The University of Queensland
- VISA Power Limited - India
- Sree Jayajothi Cements Limited - India
- Merrill Lynch Commodities Europe
- GAC Shipping (India) Pvt Ltd
- Australian Commodity Traders Exchange
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Lanco Infratech Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- SMG Consultants - Indonesia
- Essar Steel Hazira Ltd - India
- Pendopo Energi Batubara - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Vedanta Resources Plc - India
- Malabar Cements Ltd - India
- Sojitz Corporation - Japan
- Wood Mackenzie - Singapore
- Eastern Coal Council - USA
- Attock Cement Pakistan Limited
- Sakthi Sugars Limited - India
- Kapuas Tunggal Persada - Indonesia
- Chettinad Cement Corporation Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Antam Resourcindo - Indonesia
- Rio Tinto Coal - Australia
- Agrawal Coal Company - India
- Neyveli Lignite Corporation Ltd, - India
- Bukit Baiduri Energy - Indonesia
- Uttam Galva Steels Limited - India
- SMC Global Power, Philippines
- Eastern Energy - Thailand
- Central Electricity Authority - India
- CNBM International Corporation - China
- Bhatia International Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Binh Thuan Hamico - Vietnam
- Global Coal Blending Company Limited - Australia
- Miang Besar Coal Terminal - Indonesia
- Marubeni Corporation - India
- Sarangani Energy Corporation, Philippines
- Altura Mining Limited, Indonesia
- Deloitte Consulting - India
- Electricity Authority, New Zealand
- Bukit Makmur.PT - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Indonesian Coal Mining Association
- TeaM Sual Corporation - Philippines
- Holcim Trading Pte Ltd - Singapore
- Cigading International Bulk Terminal - Indonesia
- Tamil Nadu electricity Board
- White Energy Company Limited
- Bukit Asam (Persero) Tbk - Indonesia
- OPG Power Generation Pvt Ltd - India
- Coalindo Energy - Indonesia
- Medco Energi Mining Internasional
- Videocon Industries ltd - India
- Economic Council, Georgia
- Barasentosa Lestari - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Riau Bara Harum - Indonesia
- Global Business Power Corporation, Philippines
- MS Steel International - UAE
- Samtan Co., Ltd - South Korea
- Formosa Plastics Group - Taiwan
- Independent Power Producers Association of India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kartika Selabumi Mining - Indonesia
- Bhoruka Overseas - Indonesia
- Interocean Group of Companies - India
- Thiess Contractors Indonesia
- Semirara Mining Corp, Philippines
- Indo Tambangraya Megah - Indonesia
- PTC India Limited - India
- London Commodity Brokers - England
- IHS Mccloskey Coal Group - USA
- The Treasury - Australian Government
- Edison Trading Spa - Italy
- Alfred C Toepfer International GmbH - Germany
- GVK Power & Infra Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
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