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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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Wednesday, 19 December 18
GLOBAL COAL DEMAND SET TO REMAIN STABLE THROUGH 2023, DESPITE HEADWINDS - IEA
While global coal demand looks set to rise for the second year in a row in 2018, it is forecast to remain stable over the next five years, as decli ...
Wednesday, 19 December 18
GLOBAL SHIPPING SCOUTS FOR FUTURE GROWTH - PETER SAND, BIMCO
Where do we go to find economic growth that spurs shipping demand in the next five years? According to the International Monetary Fund (IMF), we sh ...
Wednesday, 19 December 18
SHIPPING MARKET INSIGHT - INTERMODAL
As another year is coming to an end, it is interesting to look at the main shipping markets and how these performed compared to 2017.
&nb ...
Tuesday, 18 December 18
COAL DEMAND WILL REMAIN STEADY THROUGH 2023, INTERNATIONAL ENERGY AGENCY SAYS - TOM DICHRISTOPHER, CNBC
Coal consumption is on the rise but will remain roughly stable over the next five years, the International Energy Agency forecasts.
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Tuesday, 18 December 18
DRY BULK: IN ABSOLUTE TERMS, ALL MAIN SIZE SEGMENTS SAW THEIR ACTUAL VOLATILITY FIGURES DECREASE - ALLIED
Since the beginning of 2016, when the dry bulk market reached its absolute bottom, freight rates have been ever since on an upward trajectory. Taki ...
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Showing 1521 to 1525 news of total 6871 |
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- Bangladesh Power Developement Board
- PNOC Exploration Corporation - Philippines
- Dalmia Cement Bharat India
- Planning Commission, India
- ASAPP Information Group - India
- GAC Shipping (India) Pvt Ltd
- Gujarat Electricity Regulatory Commission - India
- Orica Mining Services - Indonesia
- Australian Commodity Traders Exchange
- Bukit Baiduri Energy - Indonesia
- TeaM Sual Corporation - Philippines
- Salva Resources Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Pendopo Energi Batubara - Indonesia
- Wood Mackenzie - Singapore
- Australian Coal Association
- Globalindo Alam Lestari - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Timah Investasi Mineral - Indoneisa
- Eastern Energy - Thailand
- CNBM International Corporation - China
- Jorong Barutama Greston.PT - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Manunggal Multi Energi - Indonesia
- Indonesian Coal Mining Association
- Global Green Power PLC Corporation, Philippines
- Vizag Seaport Private Limited - India
- Gujarat Sidhee Cement - India
- Meenaskhi Energy Private Limited - India
- Coalindo Energy - Indonesia
- SMG Consultants - Indonesia
- Kaltim Prima Coal - Indonesia
- Central Java Power - Indonesia
- The State Trading Corporation of India Ltd
- Chettinad Cement Corporation Ltd - India
- Grasim Industreis Ltd - India
- Baramulti Group, Indonesia
- Central Electricity Authority - India
- Petron Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Coastal Gujarat Power Limited - India
- Indian Energy Exchange, India
- IHS Mccloskey Coal Group - USA
- Interocean Group of Companies - India
- PTC India Limited - India
- Power Finance Corporation Ltd., India
- GVK Power & Infra Limited - India
- Georgia Ports Authority, United States
- Bukit Makmur.PT - Indonesia
- San Jose City I Power Corp, Philippines
- Aboitiz Power Corporation - Philippines
- Barasentosa Lestari - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Mercator Lines Limited - India
- Global Business Power Corporation, Philippines
- Commonwealth Bank - Australia
- Makarim & Taira - Indonesia
- SN Aboitiz Power Inc, Philippines
- Parliament of New Zealand
- Leighton Contractors Pty Ltd - Australia
- Bhoruka Overseas - Indonesia
- Coal and Oil Company - UAE
- Medco Energi Mining Internasional
- Miang Besar Coal Terminal - Indonesia
- Indogreen Group - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Wilmar Investment Holdings
- Bharathi Cement Corporation - India
- Binh Thuan Hamico - Vietnam
- Mercuria Energy - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- India Bulls Power Limited - India
- Jindal Steel & Power Ltd - India
- Ministry of Mines - Canada
- Vijayanagar Sugar Pvt Ltd - India
- Energy Development Corp, Philippines
- Simpson Spence & Young - Indonesia
- Aditya Birla Group - India
- OPG Power Generation Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- The Treasury - Australian Government
- Cigading International Bulk Terminal - Indonesia
- Eastern Coal Council - USA
- Indian Oil Corporation Limited
- Tamil Nadu electricity Board
- Edison Trading Spa - Italy
- Sree Jayajothi Cements Limited - India
- Indo Tambangraya Megah - Indonesia
- Carbofer General Trading SA - India
- Energy Link Ltd, New Zealand
- White Energy Company Limited
- Kohat Cement Company Ltd. - Pakistan
- CIMB Investment Bank - Malaysia
- Posco Energy - South Korea
- Renaissance Capital - South Africa
- Sinarmas Energy and Mining - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Economic Council, Georgia
- The University of Queensland
- Pipit Mutiara Jaya. PT, Indonesia
- Videocon Industries ltd - India
- Mintek Dendrill Indonesia
- Kartika Selabumi Mining - Indonesia
- Minerals Council of Australia
- LBH Netherlands Bv - Netherlands
- Thiess Contractors Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Attock Cement Pakistan Limited
- Latin American Coal - Colombia
- PetroVietnam Power Coal Import and Supply Company
- Sindya Power Generating Company Private Ltd
- South Luzon Thermal Energy Corporation
- Antam Resourcindo - Indonesia
- Ambuja Cements Ltd - India
- Chamber of Mines of South Africa
- Bahari Cakrawala Sebuku - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Star Paper Mills Limited - India
- Ministry of Finance - Indonesia
- Kepco SPC Power Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Electricity Authority, New Zealand
- Semirara Mining and Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Sojitz Corporation - Japan
- Directorate Of Revenue Intelligence - India
- Kalimantan Lumbung Energi - Indonesia
- Therma Luzon, Inc, Philippines
- New Zealand Coal & Carbon
- Meralco Power Generation, Philippines
- Malabar Cements Ltd - India
- Indika Energy - Indonesia
- MS Steel International - UAE
- McConnell Dowell - Australia
- Riau Bara Harum - Indonesia
- Uttam Galva Steels Limited - India
- Karaikal Port Pvt Ltd - India
- Siam City Cement - Thailand
- Agrawal Coal Company - India
- Standard Chartered Bank - UAE
- European Bulk Services B.V. - Netherlands
- Oldendorff Carriers - Singapore
- Formosa Plastics Group - Taiwan
- Cement Manufacturers Association - India
- Borneo Indobara - Indonesia
- Semirara Mining Corp, Philippines
- Bayan Resources Tbk. - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- VISA Power Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Anglo American - United Kingdom
- Rashtriya Ispat Nigam Limited - India
- Orica Australia Pty. Ltd.
- Samtan Co., Ltd - South Korea
- Madhucon Powers Ltd - India
- Heidelberg Cement - Germany
- Goldman Sachs - Singapore
- Ministry of Transport, Egypt
- International Coal Ventures Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Kumho Petrochemical, South Korea
- Singapore Mercantile Exchange
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Larsen & Toubro Limited - India
- London Commodity Brokers - England
- Lanco Infratech Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Global Coal Blending Company Limited - Australia
- Parry Sugars Refinery, India
- Siam City Cement PLC, Thailand
- Port Waratah Coal Services - Australia
- Kobexindo Tractors - Indoneisa
- Banpu Public Company Limited - Thailand
- ICICI Bank Limited - India
- Bhushan Steel Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kapuas Tunggal Persada - Indonesia
- GMR Energy Limited - India
- Bhatia International Limited - India
- Savvy Resources Ltd - HongKong
- Thai Mozambique Logistica
- Merrill Lynch Commodities Europe
- Electricity Generating Authority of Thailand
- Independent Power Producers Association of India
- Mjunction Services Limited - India
- Alfred C Toepfer International GmbH - Germany
- Ceylon Electricity Board - Sri Lanka
- Marubeni Corporation - India
- Metalloyd Limited - United Kingdom
- Romanian Commodities Exchange
- Maheswari Brothers Coal Limited - India
- Straits Asia Resources Limited - Singapore
- Trasteel International SA, Italy
- Sical Logistics Limited - India
- Krishnapatnam Port Company Ltd. - India
- SMC Global Power, Philippines
- Vedanta Resources Plc - India
- Karbindo Abesyapradhi - Indoneisa
- Essar Steel Hazira Ltd - India
- Price Waterhouse Coopers - Russia
- Bulk Trading Sa - Switzerland
- Rio Tinto Coal - Australia
- Jaiprakash Power Ventures ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Xindia Steels Limited - India
- Sakthi Sugars Limited - India
- Iligan Light & Power Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PowerSource Philippines DevCo
- Intertek Mineral Services - Indonesia
- Africa Commodities Group - South Africa
- IEA Clean Coal Centre - UK
- Altura Mining Limited, Indonesia
- Deloitte Consulting - India
- TNB Fuel Sdn Bhd - Malaysia
- Tata Chemicals Ltd - India
- Sarangani Energy Corporation, Philippines
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