We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Tuesday, 25 December 18
FUEL QUALITY AND SAFETY IN IMO CONVENTIONS: A GROWING CHALLENGE, EVEN PRIOR TO 1 JANUARY 2020 - IUMI
At the 100th session of the International Maritime Organization’s (IMO) Maritime Safety Committee (MSC) meeting discussions on fuel quality a ...
Monday, 24 December 18
DRY BULK MARKET: CAPESIZE MARKET ON BACKFOOT AS 2018'S END DRAWS NEAR - THE BALTIC BRIEFING
Capesize
Panic set in in the East as the holiday season approaches, with owners chasing rates lower. Rates on the key West Australia/China route ...
Friday, 21 December 18
4.2 MILLION DWT OF DRY BULK SHIPS SCRAPPED UNTIL 17 DEC, DOWN 71.6% Y/Y - BIMCO
2018 has been a slow year for dry bulk demolitions, with only 4.2 million DWT scrapped (as of 17 December), down 71.6% compared to last year. An al ...
Thursday, 20 December 18
INDONESIAN COAL PRICES DIVERGE FROM KEY BENCHMARK - FITCH RATINGS
The Newcastle 6,000kcal coal price benchmark that is widely used to determine most coal price estimates for Indonesian coal miners has increasingly ...
Wednesday, 19 December 18
CHINA'S IMPORT RESTRICTIONS ON COAL SPOILS THE PARTY FOR PANAMAXES - DREWRY
The Chinese government’s objective of suppressing coal and lignite imports in November and December 2018 is adversely impacting demand for Pa ...
|
|
|
Showing 1516 to 1520 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Bahari Cakrawala Sebuku - Indonesia
- PTC India Limited - India
- Bayan Resources Tbk. - Indonesia
- Kobexindo Tractors - Indoneisa
- Timah Investasi Mineral - Indoneisa
- Aditya Birla Group - India
- Thiess Contractors Indonesia
- Sinarmas Energy and Mining - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Minerals Council of Australia
- Chettinad Cement Corporation Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Standard Chartered Bank - UAE
- Indian Energy Exchange, India
- TNB Fuel Sdn Bhd - Malaysia
- SMC Global Power, Philippines
- Straits Asia Resources Limited - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sakthi Sugars Limited - India
- Indika Energy - Indonesia
- Makarim & Taira - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- GVK Power & Infra Limited - India
- London Commodity Brokers - England
- OPG Power Generation Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Rashtriya Ispat Nigam Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Essar Steel Hazira Ltd - India
- Chamber of Mines of South Africa
- Meralco Power Generation, Philippines
- International Coal Ventures Pvt Ltd - India
- Mjunction Services Limited - India
- Energy Development Corp, Philippines
- Bhatia International Limited - India
- Coal and Oil Company - UAE
- Ministry of Transport, Egypt
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- The University of Queensland
- Antam Resourcindo - Indonesia
- Merrill Lynch Commodities Europe
- Renaissance Capital - South Africa
- Edison Trading Spa - Italy
- Kepco SPC Power Corporation, Philippines
- Agrawal Coal Company - India
- Latin American Coal - Colombia
- Pendopo Energi Batubara - Indonesia
- Altura Mining Limited, Indonesia
- Videocon Industries ltd - India
- Larsen & Toubro Limited - India
- Binh Thuan Hamico - Vietnam
- Parry Sugars Refinery, India
- Kumho Petrochemical, South Korea
- LBH Netherlands Bv - Netherlands
- SMG Consultants - Indonesia
- ICICI Bank Limited - India
- Directorate Of Revenue Intelligence - India
- AsiaOL BioFuels Corp., Philippines
- Ceylon Electricity Board - Sri Lanka
- Electricity Authority, New Zealand
- CIMB Investment Bank - Malaysia
- Barasentosa Lestari - Indonesia
- Rio Tinto Coal - Australia
- Gujarat Mineral Development Corp Ltd - India
- Gujarat Sidhee Cement - India
- Salva Resources Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PNOC Exploration Corporation - Philippines
- IEA Clean Coal Centre - UK
- Mercator Lines Limited - India
- Ind-Barath Power Infra Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Kohat Cement Company Ltd. - Pakistan
- Eastern Energy - Thailand
- Karbindo Abesyapradhi - Indoneisa
- GMR Energy Limited - India
- Posco Energy - South Korea
- PowerSource Philippines DevCo
- Metalloyd Limited - United Kingdom
- Orica Mining Services - Indonesia
- Karaikal Port Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Semirara Mining Corp, Philippines
- Semirara Mining and Power Corporation, Philippines
- Indian Oil Corporation Limited
- The State Trading Corporation of India Ltd
- Medco Energi Mining Internasional
- Kaltim Prima Coal - Indonesia
- Marubeni Corporation - India
- PetroVietnam Power Coal Import and Supply Company
- Mercuria Energy - Indonesia
- San Jose City I Power Corp, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- Simpson Spence & Young - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Ministry of Mines - Canada
- Banpu Public Company Limited - Thailand
- Star Paper Mills Limited - India
- The Treasury - Australian Government
- Heidelberg Cement - Germany
- Africa Commodities Group - South Africa
- Central Electricity Authority - India
- Vijayanagar Sugar Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Port Waratah Coal Services - Australia
- Price Waterhouse Coopers - Russia
- Cement Manufacturers Association - India
- Sree Jayajothi Cements Limited - India
- Bangladesh Power Developement Board
- Eastern Coal Council - USA
- Georgia Ports Authority, United States
- Kapuas Tunggal Persada - Indonesia
- Australian Commodity Traders Exchange
- Romanian Commodities Exchange
- Interocean Group of Companies - India
- Bulk Trading Sa - Switzerland
- Iligan Light & Power Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- GN Power Mariveles Coal Plant, Philippines
- Attock Cement Pakistan Limited
- Central Java Power - Indonesia
- Sindya Power Generating Company Private Ltd
- Borneo Indobara - Indonesia
- Petron Corporation, Philippines
- Xindia Steels Limited - India
- Leighton Contractors Pty Ltd - Australia
- Bukit Baiduri Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- IHS Mccloskey Coal Group - USA
- Aboitiz Power Corporation - Philippines
- Baramulti Group, Indonesia
- Power Finance Corporation Ltd., India
- ASAPP Information Group - India
- Vizag Seaport Private Limited - India
- Miang Besar Coal Terminal - Indonesia
- Economic Council, Georgia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kartika Selabumi Mining - Indonesia
- Global Business Power Corporation, Philippines
- Ambuja Cements Ltd - India
- Uttam Galva Steels Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Orica Australia Pty. Ltd.
- Bharathi Cement Corporation - India
- Lanco Infratech Ltd - India
- Oldendorff Carriers - Singapore
- VISA Power Limited - India
- Indogreen Group - Indonesia
- Electricity Generating Authority of Thailand
- Indonesian Coal Mining Association
- Bukit Makmur.PT - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Formosa Plastics Group - Taiwan
- Malabar Cements Ltd - India
- Dalmia Cement Bharat India
- Savvy Resources Ltd - HongKong
- McConnell Dowell - Australia
- Grasim Industreis Ltd - India
- Deloitte Consulting - India
- Bhushan Steel Limited - India
- Therma Luzon, Inc, Philippines
- Australian Coal Association
- Goldman Sachs - Singapore
- Holcim Trading Pte Ltd - Singapore
- Mintek Dendrill Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Global Coal Blending Company Limited - Australia
- Intertek Mineral Services - Indonesia
- Kideco Jaya Agung - Indonesia
- Jaiprakash Power Ventures ltd
- Globalindo Alam Lestari - Indonesia
- Tata Chemicals Ltd - India
- Vedanta Resources Plc - India
- Jindal Steel & Power Ltd - India
- New Zealand Coal & Carbon
- Siam City Cement - Thailand
- CNBM International Corporation - China
- Bhoruka Overseas - Indonesia
- Anglo American - United Kingdom
- Global Green Power PLC Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- European Bulk Services B.V. - Netherlands
- MS Steel International - UAE
- Trasteel International SA, Italy
- Thai Mozambique Logistica
- Carbofer General Trading SA - India
- Samtan Co., Ltd - South Korea
- Parliament of New Zealand
- White Energy Company Limited
- Toyota Tsusho Corporation, Japan
- South Luzon Thermal Energy Corporation
- Manunggal Multi Energi - Indonesia
- Singapore Mercantile Exchange
- Meenaskhi Energy Private Limited - India
- Wilmar Investment Holdings
- India Bulls Power Limited - India
- Gujarat Electricity Regulatory Commission - India
- Indo Tambangraya Megah - Indonesia
- Maheswari Brothers Coal Limited - India
- Coalindo Energy - Indonesia
- Wood Mackenzie - Singapore
- Ministry of Finance - Indonesia
- Tamil Nadu electricity Board
- Commonwealth Bank - Australia
- Independent Power Producers Association of India
- Energy Link Ltd, New Zealand
- Riau Bara Harum - Indonesia
- Sojitz Corporation - Japan
- Siam City Cement PLC, Thailand
- Madhucon Powers Ltd - India
- Sical Logistics Limited - India
- Planning Commission, India
- TeaM Sual Corporation - Philippines
- Neyveli Lignite Corporation Ltd, - India
|
| |
| |
|
