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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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Friday, 14 December 18
KOSPO INVITED BIDS FOR 320,000 MT OF LOW CALORIFIC VALUE COAL
COALspot.com: South Korea state-owned utility Korea Southern Power Co. Ltd (KOSPO) issued a tender for 320,000 MT of min 4,300 kcal/kg NCV coal per ...
Friday, 14 December 18
KOSPO INVITES BIDS FOR 1,177,000 METRIC TONS OF COAL FOR Q1' 19 LOADING
COALspot.com: South Korea state-owned utility Korea Southern Power Co. Ltd (KOSPO) issued a tender for 701,000 MT of min 5,600 kcal/kg NCV coal and ...
Friday, 14 December 18
COAL IMPORT TO BE CHECKED BY RISING DOMESTIC PRODUCTION - FINANCIAL EXPRESS
The government’s effort to increase domestic coal production and power demand falling with the onset of the winters will check coal imports, ...
Thursday, 13 December 18
STRAITS AFFECTED BY TERRITORIAL DISPUTE BETWEEN SINGAPORE AND MALAYSIA - THE STANDARD CLUB
A recent territorial dispute has occurred between Singapore and Malaysia involving the Straits of Johor.
The Malaysian Attorney Gene ...
Wednesday, 12 December 18
SHIPPING MARKET INSIGHT - CHRISTOPHER WHITTY
China’s monthly iron ore imports dropped for the first time this year joined by declines in copper and soybeans as economic growth slows in t ...
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Showing 1531 to 1535 news of total 6871 |
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- Essar Steel Hazira Ltd - India
- CNBM International Corporation - China
- Petron Corporation, Philippines
- Malabar Cements Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Ind-Barath Power Infra Limited - India
- Price Waterhouse Coopers - Russia
- Wood Mackenzie - Singapore
- Jorong Barutama Greston.PT - Indonesia
- IEA Clean Coal Centre - UK
- Chettinad Cement Corporation Ltd - India
- Sindya Power Generating Company Private Ltd
- Karaikal Port Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- ASAPP Information Group - India
- Global Business Power Corporation, Philippines
- Thai Mozambique Logistica
- Gujarat Mineral Development Corp Ltd - India
- Gujarat Sidhee Cement - India
- SMG Consultants - Indonesia
- Bhoruka Overseas - Indonesia
- Therma Luzon, Inc, Philippines
- Madhucon Powers Ltd - India
- Tamil Nadu electricity Board
- OPG Power Generation Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- ICICI Bank Limited - India
- Borneo Indobara - Indonesia
- Orica Mining Services - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Makarim & Taira - Indonesia
- Straits Asia Resources Limited - Singapore
- Posco Energy - South Korea
- Standard Chartered Bank - UAE
- Central Electricity Authority - India
- Chamber of Mines of South Africa
- Kapuas Tunggal Persada - Indonesia
- Sical Logistics Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- London Commodity Brokers - England
- Meralco Power Generation, Philippines
- Oldendorff Carriers - Singapore
- Mercator Lines Limited - India
- International Coal Ventures Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Renaissance Capital - South Africa
- Australian Commodity Traders Exchange
- Merrill Lynch Commodities Europe
- Bayan Resources Tbk. - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- The Treasury - Australian Government
- Antam Resourcindo - Indonesia
- Mjunction Services Limited - India
- Thiess Contractors Indonesia
- Timah Investasi Mineral - Indoneisa
- Intertek Mineral Services - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Baramulti Group, Indonesia
- Kaltim Prima Coal - Indonesia
- GMR Energy Limited - India
- Riau Bara Harum - Indonesia
- Kepco SPC Power Corporation, Philippines
- MS Steel International - UAE
- Formosa Plastics Group - Taiwan
- Krishnapatnam Port Company Ltd. - India
- San Jose City I Power Corp, Philippines
- Meenaskhi Energy Private Limited - India
- Ministry of Transport, Egypt
- Romanian Commodities Exchange
- Maharashtra Electricity Regulatory Commission - India
- Leighton Contractors Pty Ltd - Australia
- Mintek Dendrill Indonesia
- Attock Cement Pakistan Limited
- Kobexindo Tractors - Indoneisa
- Uttam Galva Steels Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Coastal Gujarat Power Limited - India
- Siam City Cement PLC, Thailand
- Iligan Light & Power Inc, Philippines
- Bhushan Steel Limited - India
- Bukit Makmur.PT - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Holcim Trading Pte Ltd - Singapore
- Aditya Birla Group - India
- Billiton Holdings Pty Ltd - Australia
- Bhatia International Limited - India
- Bangladesh Power Developement Board
- Wilmar Investment Holdings
- Miang Besar Coal Terminal - Indonesia
- Toyota Tsusho Corporation, Japan
- Pendopo Energi Batubara - Indonesia
- VISA Power Limited - India
- Videocon Industries ltd - India
- Barasentosa Lestari - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Altura Mining Limited, Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Central Java Power - Indonesia
- LBH Netherlands Bv - Netherlands
- GN Power Mariveles Coal Plant, Philippines
- Global Coal Blending Company Limited - Australia
- McConnell Dowell - Australia
- Rashtriya Ispat Nigam Limited - India
- Medco Energi Mining Internasional
- Latin American Coal - Colombia
- TNB Fuel Sdn Bhd - Malaysia
- Indogreen Group - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Energy Development Corp, Philippines
- PNOC Exploration Corporation - Philippines
- Edison Trading Spa - Italy
- Port Waratah Coal Services - Australia
- Electricity Generating Authority of Thailand
- Commonwealth Bank - Australia
- Aboitiz Power Corporation - Philippines
- TeaM Sual Corporation - Philippines
- Mercuria Energy - Indonesia
- Manunggal Multi Energi - Indonesia
- Planning Commission, India
- GVK Power & Infra Limited - India
- Tata Chemicals Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Lanco Infratech Ltd - India
- Indian Energy Exchange, India
- Bharathi Cement Corporation - India
- Ceylon Electricity Board - Sri Lanka
- Parliament of New Zealand
- Goldman Sachs - Singapore
- Africa Commodities Group - South Africa
- South Luzon Thermal Energy Corporation
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Cement Manufacturers Association - India
- New Zealand Coal & Carbon
- Larsen & Toubro Limited - India
- Parry Sugars Refinery, India
- SN Aboitiz Power Inc, Philippines
- Indo Tambangraya Megah - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Deloitte Consulting - India
- Kumho Petrochemical, South Korea
- PTC India Limited - India
- Directorate Of Revenue Intelligence - India
- Rio Tinto Coal - Australia
- Minerals Council of Australia
- Sojitz Corporation - Japan
- Pipit Mutiara Jaya. PT, Indonesia
- India Bulls Power Limited - India
- Singapore Mercantile Exchange
- Bukit Baiduri Energy - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Eastern Coal Council - USA
- Xindia Steels Limited - India
- Ministry of Finance - Indonesia
- Star Paper Mills Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kartika Selabumi Mining - Indonesia
- Indian Oil Corporation Limited
- Interocean Group of Companies - India
- Trasteel International SA, Italy
- Gujarat Electricity Regulatory Commission - India
- The University of Queensland
- Grasim Industreis Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Vizag Seaport Private Limited - India
- GAC Shipping (India) Pvt Ltd
- Semirara Mining Corp, Philippines
- Savvy Resources Ltd - HongKong
- Independent Power Producers Association of India
- Australian Coal Association
- Bulk Trading Sa - Switzerland
- Asia Pacific Energy Resources Ventures Inc, Philippines
- IHS Mccloskey Coal Group - USA
- Cigading International Bulk Terminal - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Anglo American - United Kingdom
- Economic Council, Georgia
- Sarangani Energy Corporation, Philippines
- White Energy Company Limited
- Power Finance Corporation Ltd., India
- Georgia Ports Authority, United States
- Vedanta Resources Plc - India
- Coal and Oil Company - UAE
- Bukit Asam (Persero) Tbk - Indonesia
- Kideco Jaya Agung - Indonesia
- Indika Energy - Indonesia
- Samtan Co., Ltd - South Korea
- Ministry of Mines - Canada
- Simpson Spence & Young - Indonesia
- Energy Link Ltd, New Zealand
- PowerSource Philippines DevCo
- Ambuja Cements Ltd - India
- Binh Thuan Hamico - Vietnam
- Eastern Energy - Thailand
- Metalloyd Limited - United Kingdom
- European Bulk Services B.V. - Netherlands
- Heidelberg Cement - Germany
- Global Green Power PLC Corporation, Philippines
- Orica Australia Pty. Ltd.
- Jaiprakash Power Ventures ltd
- Agrawal Coal Company - India
- Banpu Public Company Limited - Thailand
- Jindal Steel & Power Ltd - India
- Coalindo Energy - Indonesia
- Carbofer General Trading SA - India
- Siam City Cement - Thailand
- Dalmia Cement Bharat India
- CIMB Investment Bank - Malaysia
- The State Trading Corporation of India Ltd
- Indonesian Coal Mining Association
- Marubeni Corporation - India
- Sree Jayajothi Cements Limited - India
- Sakthi Sugars Limited - India
- SMC Global Power, Philippines
- Electricity Authority, New Zealand
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