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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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Tuesday, 27 November 18
PANAMAX AND SUPRAMAX INDICES WITNESSED A DECLINE OF JUST BELOW 14% IN THEIR MEAN ON A MONTH-ON-MONTH COMPARISON - ALLIED SHIPPING
A month of sharp corrections and great asymmetries for the dry bulk sector, with the overall overview of the market shipping rapidly from a state o ...
Monday, 26 November 18
SUPRAMAX: THE ASIAN MARKET STALLED THIS WEEK WITH A BUILD-UP OF TONNAGE - BALTIC BRIEFING
Capesize
It was a positive end to the week, with West Australia/China making significant gains and firing owners’ resolve. There was talk ...
Friday, 23 November 18
GOLDEN ENERGY'S POTENTIAL ACQUISITION OF STANMORE CREDIT POSITIVE - FITCH RATINGS
Golden Energy and Resources Limited's (GEAR, B+/Positive) potential acquisition of Stanmore Coal will help the company diversify its coal opera ...
Friday, 23 November 18
ASSOCIATION CALLS FOR REVISION OF DMO SCHEME FOR COAL - JP
The Indonesian Coal Mining Association (APBI) has called on the government to revise the domestic market obligation (DMO) scheme for coal, which re ...
Friday, 23 November 18
INDONESIA'S REVENUES FROM MINERAL AND COAL INCREASE TO US$ 2.858 BILLION - ANTARA
Indonesia`s non-tax state revenues from the mineral and coal sub-sector reached Rp 41.77 trillion (approximately US$ 2.858 Billion) as of Nov 16, 2 ...
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Showing 1551 to 1555 news of total 6871 |
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- Bhatia International Limited - India
- Salva Resources Pvt Ltd - India
- Ministry of Transport, Egypt
- Jorong Barutama Greston.PT - Indonesia
- Mjunction Services Limited - India
- Sakthi Sugars Limited - India
- Economic Council, Georgia
- Oldendorff Carriers - Singapore
- GN Power Mariveles Coal Plant, Philippines
- Riau Bara Harum - Indonesia
- Antam Resourcindo - Indonesia
- Binh Thuan Hamico - Vietnam
- Global Coal Blending Company Limited - Australia
- The Treasury - Australian Government
- Straits Asia Resources Limited - Singapore
- Borneo Indobara - Indonesia
- Semirara Mining Corp, Philippines
- Ministry of Finance - Indonesia
- Tamil Nadu electricity Board
- Intertek Mineral Services - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bukit Baiduri Energy - Indonesia
- Indian Oil Corporation Limited
- VISA Power Limited - India
- Meralco Power Generation, Philippines
- Baramulti Group, Indonesia
- Indo Tambangraya Megah - Indonesia
- Energy Development Corp, Philippines
- Singapore Mercantile Exchange
- Jaiprakash Power Ventures ltd
- Gujarat Sidhee Cement - India
- Indika Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Gujarat Electricity Regulatory Commission - India
- International Coal Ventures Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Port Waratah Coal Services - Australia
- Star Paper Mills Limited - India
- GAC Shipping (India) Pvt Ltd
- Coalindo Energy - Indonesia
- Pendopo Energi Batubara - Indonesia
- South Luzon Thermal Energy Corporation
- Bhushan Steel Limited - India
- Romanian Commodities Exchange
- Asmin Koalindo Tuhup - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Siam City Cement PLC, Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Madhucon Powers Ltd - India
- Meenaskhi Energy Private Limited - India
- Bhoruka Overseas - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Rashtriya Ispat Nigam Limited - India
- SMG Consultants - Indonesia
- Orica Mining Services - Indonesia
- Directorate Of Revenue Intelligence - India
- White Energy Company Limited
- Lanco Infratech Ltd - India
- PTC India Limited - India
- Therma Luzon, Inc, Philippines
- Standard Chartered Bank - UAE
- LBH Netherlands Bv - Netherlands
- Africa Commodities Group - South Africa
- Mercator Lines Limited - India
- Semirara Mining and Power Corporation, Philippines
- Altura Mining Limited, Indonesia
- IHS Mccloskey Coal Group - USA
- Metalloyd Limited - United Kingdom
- Krishnapatnam Port Company Ltd. - India
- Deloitte Consulting - India
- Tata Chemicals Ltd - India
- OPG Power Generation Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Grasim Industreis Ltd - India
- Thai Mozambique Logistica
- Alfred C Toepfer International GmbH - Germany
- Bukit Makmur.PT - Indonesia
- Edison Trading Spa - Italy
- IEA Clean Coal Centre - UK
- Rio Tinto Coal - Australia
- Petron Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Ind-Barath Power Infra Limited - India
- Thiess Contractors Indonesia
- Interocean Group of Companies - India
- Jindal Steel & Power Ltd - India
- Sojitz Corporation - Japan
- Miang Besar Coal Terminal - Indonesia
- Siam City Cement - Thailand
- Kepco SPC Power Corporation, Philippines
- Minerals Council of Australia
- Marubeni Corporation - India
- Kumho Petrochemical, South Korea
- Billiton Holdings Pty Ltd - Australia
- PNOC Exploration Corporation - Philippines
- Toyota Tsusho Corporation, Japan
- Attock Cement Pakistan Limited
- Petrochimia International Co. Ltd.- Taiwan
- Commonwealth Bank - Australia
- Global Business Power Corporation, Philippines
- Eastern Coal Council - USA
- New Zealand Coal & Carbon
- Manunggal Multi Energi - Indonesia
- Bangladesh Power Developement Board
- Indogreen Group - Indonesia
- TeaM Sual Corporation - Philippines
- Goldman Sachs - Singapore
- Essar Steel Hazira Ltd - India
- PowerSource Philippines DevCo
- AsiaOL BioFuels Corp., Philippines
- Ambuja Cements Ltd - India
- McConnell Dowell - Australia
- Trasteel International SA, Italy
- The University of Queensland
- Chamber of Mines of South Africa
- Price Waterhouse Coopers - Russia
- Ceylon Electricity Board - Sri Lanka
- Chettinad Cement Corporation Ltd - India
- Power Finance Corporation Ltd., India
- Bulk Trading Sa - Switzerland
- Bharathi Cement Corporation - India
- Kideco Jaya Agung - Indonesia
- Videocon Industries ltd - India
- Timah Investasi Mineral - Indoneisa
- Carbofer General Trading SA - India
- Karaikal Port Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Renaissance Capital - South Africa
- Australian Commodity Traders Exchange
- Central Electricity Authority - India
- Global Green Power PLC Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Aboitiz Power Corporation - Philippines
- GMR Energy Limited - India
- ASAPP Information Group - India
- Orica Australia Pty. Ltd.
- Bukit Asam (Persero) Tbk - Indonesia
- Kartika Selabumi Mining - Indonesia
- Malabar Cements Ltd - India
- Savvy Resources Ltd - HongKong
- GVK Power & Infra Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indonesian Coal Mining Association
- Vijayanagar Sugar Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Agrawal Coal Company - India
- ICICI Bank Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Neyveli Lignite Corporation Ltd, - India
- Uttam Galva Steels Limited - India
- SN Aboitiz Power Inc, Philippines
- Samtan Co., Ltd - South Korea
- Makarim & Taira - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Planning Commission, India
- PetroVietnam Power Coal Import and Supply Company
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Heidelberg Cement - Germany
- Iligan Light & Power Inc, Philippines
- Mercuria Energy - Indonesia
- Formosa Plastics Group - Taiwan
- The State Trading Corporation of India Ltd
- SMC Global Power, Philippines
- Parry Sugars Refinery, India
- Sinarmas Energy and Mining - Indonesia
- San Jose City I Power Corp, Philippines
- Coastal Gujarat Power Limited - India
- Wilmar Investment Holdings
- Larsen & Toubro Limited - India
- Banpu Public Company Limited - Thailand
- Kohat Cement Company Ltd. - Pakistan
- Cement Manufacturers Association - India
- Sindya Power Generating Company Private Ltd
- Maharashtra Electricity Regulatory Commission - India
- Vizag Seaport Private Limited - India
- Sical Logistics Limited - India
- European Bulk Services B.V. - Netherlands
- Wood Mackenzie - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Coal and Oil Company - UAE
- Anglo American - United Kingdom
- Mintek Dendrill Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Barasentosa Lestari - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Kaltim Prima Coal - Indonesia
- MS Steel International - UAE
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Aditya Birla Group - India
- London Commodity Brokers - England
- Medco Energi Mining Internasional
- Electricity Authority, New Zealand
- Parliament of New Zealand
- Merrill Lynch Commodities Europe
- India Bulls Power Limited - India
- Latin American Coal - Colombia
- Sarangani Energy Corporation, Philippines
- Xindia Steels Limited - India
- Vedanta Resources Plc - India
- Indian Energy Exchange, India
- Leighton Contractors Pty Ltd - Australia
- Kobexindo Tractors - Indoneisa
- Simpson Spence & Young - Indonesia
- Georgia Ports Authority, United States
- Electricity Generating Authority of Thailand
- Eastern Energy - Thailand
- Central Java Power - Indonesia
- Dalmia Cement Bharat India
- Independent Power Producers Association of India
- Ministry of Mines - Canada
- Australian Coal Association
- CNBM International Corporation - China
- Maheswari Brothers Coal Limited - India
- Posco Energy - South Korea
- Bayan Resources Tbk. - Indonesia
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