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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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Monday, 19 November 18
SUPRAMAX: THE BSI CONTINUED TO FALL LAST WEEK, ESPECIALLY THE ASIAN ROUTES - BALTIC BRIEFING
Capesize
After a cut throat couple of weeks, the market finally appeared to have found a floor and rates ticked up. Those analysts that predict ...
Sunday, 18 November 18
COAL STOCKS IN A THIRD OF NTPC PLANTS CLOSE TO NIL - FINANCIAL EXPRESS
Coal supply shortage continues to haunt NTPC, the country’s largest power generator, with latest government data showing 31% of the company&r ...
Thursday, 15 November 18
OIL MARKET REPORT: HEEDING THE WARNINGS - IEA
In last month’s Report, we noted that since the middle of the year oil supply had increased sharply, with gains in the Middle East, Russia an ...
Wednesday, 14 November 18
BIMCO ADOPTS 2020 BUNKER CLAUSES
BIMCO has developed two 2020 bunker clauses that deal with general compliance and the transitional period for an early December release.
...
Wednesday, 14 November 18
SHIPPING MARKET INSIGHT - KONSTANTINOS KONTOMICHIS
The shipping industry is going through an interesting period across all markets. Since the end of last year, the Dry Baltic Index has been showing ...
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Showing 1561 to 1565 news of total 6871 |
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- London Commodity Brokers - England
- Madhucon Powers Ltd - India
- Vedanta Resources Plc - India
- GMR Energy Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Sree Jayajothi Cements Limited - India
- Timah Investasi Mineral - Indoneisa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kepco SPC Power Corporation, Philippines
- Power Finance Corporation Ltd., India
- Posco Energy - South Korea
- Jindal Steel & Power Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- CNBM International Corporation - China
- GN Power Mariveles Coal Plant, Philippines
- Tamil Nadu electricity Board
- Kumho Petrochemical, South Korea
- Tata Chemicals Ltd - India
- Mercator Lines Limited - India
- Australian Commodity Traders Exchange
- Kideco Jaya Agung - Indonesia
- Australian Coal Association
- Semirara Mining and Power Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- IEA Clean Coal Centre - UK
- Salva Resources Pvt Ltd - India
- Coalindo Energy - Indonesia
- Intertek Mineral Services - Indonesia
- Parry Sugars Refinery, India
- Coastal Gujarat Power Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Bukit Baiduri Energy - Indonesia
- Indian Energy Exchange, India
- Singapore Mercantile Exchange
- Savvy Resources Ltd - HongKong
- SN Aboitiz Power Inc, Philippines
- Essar Steel Hazira Ltd - India
- Bulk Trading Sa - Switzerland
- Neyveli Lignite Corporation Ltd, - India
- Xindia Steels Limited - India
- Attock Cement Pakistan Limited
- The State Trading Corporation of India Ltd
- Binh Thuan Hamico - Vietnam
- Holcim Trading Pte Ltd - Singapore
- Star Paper Mills Limited - India
- Uttam Galva Steels Limited - India
- Price Waterhouse Coopers - Russia
- Kalimantan Lumbung Energi - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Coal and Oil Company - UAE
- Bank of Tokyo Mitsubishi UFJ Ltd
- PTC India Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Commonwealth Bank - Australia
- Indogreen Group - Indonesia
- India Bulls Power Limited - India
- Cement Manufacturers Association - India
- Sinarmas Energy and Mining - Indonesia
- Dalmia Cement Bharat India
- Petrochimia International Co. Ltd.- Taiwan
- Port Waratah Coal Services - Australia
- Billiton Holdings Pty Ltd - Australia
- Altura Mining Limited, Indonesia
- Bhushan Steel Limited - India
- Chamber of Mines of South Africa
- Globalindo Alam Lestari - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Meralco Power Generation, Philippines
- Bangladesh Power Developement Board
- Bhoruka Overseas - Indonesia
- SMG Consultants - Indonesia
- Antam Resourcindo - Indonesia
- Vizag Seaport Private Limited - India
- Gujarat Electricity Regulatory Commission - India
- International Coal Ventures Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- PNOC Exploration Corporation - Philippines
- VISA Power Limited - India
- Maheswari Brothers Coal Limited - India
- White Energy Company Limited
- Barasentosa Lestari - Indonesia
- GAC Shipping (India) Pvt Ltd
- Global Coal Blending Company Limited - Australia
- Electricity Authority, New Zealand
- Wood Mackenzie - Singapore
- MS Steel International - UAE
- Aboitiz Power Corporation - Philippines
- Jaiprakash Power Ventures ltd
- TNB Fuel Sdn Bhd - Malaysia
- Alfred C Toepfer International GmbH - Germany
- South Luzon Thermal Energy Corporation
- CIMB Investment Bank - Malaysia
- Bhatia International Limited - India
- Ind-Barath Power Infra Limited - India
- Mjunction Services Limited - India
- Formosa Plastics Group - Taiwan
- Carbofer General Trading SA - India
- Krishnapatnam Port Company Ltd. - India
- Gujarat Sidhee Cement - India
- Videocon Industries ltd - India
- Africa Commodities Group - South Africa
- Ceylon Electricity Board - Sri Lanka
- Cigading International Bulk Terminal - Indonesia
- Eastern Energy - Thailand
- Pendopo Energi Batubara - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Aditya Birla Group - India
- ASAPP Information Group - India
- Deloitte Consulting - India
- Orica Mining Services - Indonesia
- Indo Tambangraya Megah - Indonesia
- Metalloyd Limited - United Kingdom
- Electricity Generating Authority of Thailand
- Mercuria Energy - Indonesia
- Lanco Infratech Ltd - India
- Medco Energi Mining Internasional
- Leighton Contractors Pty Ltd - Australia
- Ministry of Transport, Egypt
- Sojitz Corporation - Japan
- GVK Power & Infra Limited - India
- Bayan Resources Tbk. - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Energy Development Corp, Philippines
- Global Business Power Corporation, Philippines
- Bharathi Cement Corporation - India
- Energy Link Ltd, New Zealand
- Romanian Commodities Exchange
- Mintek Dendrill Indonesia
- LBH Netherlands Bv - Netherlands
- Kartika Selabumi Mining - Indonesia
- Merrill Lynch Commodities Europe
- Vijayanagar Sugar Pvt Ltd - India
- Orica Australia Pty. Ltd.
- Samtan Co., Ltd - South Korea
- Sindya Power Generating Company Private Ltd
- New Zealand Coal & Carbon
- Meenaskhi Energy Private Limited - India
- Simpson Spence & Young - Indonesia
- Directorate Of Revenue Intelligence - India
- Thai Mozambique Logistica
- Sical Logistics Limited - India
- Grasim Industreis Ltd - India
- Anglo American - United Kingdom
- Marubeni Corporation - India
- Borneo Indobara - Indonesia
- PowerSource Philippines DevCo
- Sakthi Sugars Limited - India
- The Treasury - Australian Government
- Banpu Public Company Limited - Thailand
- Indian Oil Corporation Limited
- Ministry of Mines - Canada
- Independent Power Producers Association of India
- Siam City Cement PLC, Thailand
- Iligan Light & Power Inc, Philippines
- Ministry of Finance - Indonesia
- Ambuja Cements Ltd - India
- SMC Global Power, Philippines
- Central Electricity Authority - India
- Bahari Cakrawala Sebuku - Indonesia
- Minerals Council of Australia
- Manunggal Multi Energi - Indonesia
- Malabar Cements Ltd - India
- Central Java Power - Indonesia
- Semirara Mining Corp, Philippines
- Toyota Tsusho Corporation, Japan
- Bukit Asam (Persero) Tbk - Indonesia
- McConnell Dowell - Australia
- Kobexindo Tractors - Indoneisa
- The University of Queensland
- Indika Energy - Indonesia
- Economic Council, Georgia
- Planning Commission, India
- Jorong Barutama Greston.PT - Indonesia
- Goldman Sachs - Singapore
- Agrawal Coal Company - India
- Sarangani Energy Corporation, Philippines
- Georgia Ports Authority, United States
- San Jose City I Power Corp, Philippines
- Trasteel International SA, Italy
- Directorate General of MIneral and Coal - Indonesia
- Larsen & Toubro Limited - India
- Eastern Coal Council - USA
- Parliament of New Zealand
- Latin American Coal - Colombia
- Renaissance Capital - South Africa
- Bukit Makmur.PT - Indonesia
- Edison Trading Spa - Italy
- PetroVietnam Power Coal Import and Supply Company
- European Bulk Services B.V. - Netherlands
- Gujarat Mineral Development Corp Ltd - India
- Rio Tinto Coal - Australia
- Thiess Contractors Indonesia
- Siam City Cement - Thailand
- Kaltim Prima Coal - Indonesia
- Riau Bara Harum - Indonesia
- Therma Luzon, Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- ICICI Bank Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Oldendorff Carriers - Singapore
- Indonesian Coal Mining Association
- Rashtriya Ispat Nigam Limited - India
- Kapuas Tunggal Persada - Indonesia
- Baramulti Group, Indonesia
- Heidelberg Cement - Germany
- Straits Asia Resources Limited - Singapore
- Makarim & Taira - Indonesia
- IHS Mccloskey Coal Group - USA
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Interocean Group of Companies - India
- Wilmar Investment Holdings
- TeaM Sual Corporation - Philippines
- Petron Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- Standard Chartered Bank - UAE
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