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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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Thursday, 18 October 18
SUPRAMAX: INDO/WC INDIA SUPRAS ARE FIXING AROUND MID $14000S P/D BASIS SPORE DELIVERY
Capesize
The volatile Cape market continues this week, especially in the Pacific says Fearnleys in its latest weekly report.
...
Thursday, 18 October 18
COAL SHORTAGE HITS POWER SECTOR AGAIN; HOW INDIA CAN GET ITS PRODUCTION RIGHT - ANIL SWARUP
By convincing states of the value proposition of increased production, the record production of Fy15 & Fy16 can be emulated.
The ...
Thursday, 18 October 18
CHINA POWER REFORM NEUTRAL ON GRIDS, PRESSURES IPP MARGINS - FITCH RATINGS
China's power sector reform has a broadly neutral impact on transmission grids although it will pressure the power producers' margins, says ...
Wednesday, 17 October 18
ESCROW SERVICE FOR BALTIC MEMBERS NOW LIVE
The Baltic Exchange’s Escrow Service for its members to hold deposits for ship sale transactions goes live today (15 October). The service is ...
Wednesday, 17 October 18
SHIPPING MARKET INSIGHT - TIMOS PAPADIMITRIOU
In the last three months approximately 72 tankers changed hands involving ships larger than 33kdwt up to VLCC. 43 of those vessels had to do ...
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Showing 1586 to 1590 news of total 6871 |
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- Kalimantan Lumbung Energi - Indonesia
- Attock Cement Pakistan Limited
- Siam City Cement PLC, Thailand
- Kumho Petrochemical, South Korea
- Independent Power Producers Association of India
- Gujarat Sidhee Cement - India
- Jaiprakash Power Ventures ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sical Logistics Limited - India
- Pendopo Energi Batubara - Indonesia
- Mercator Lines Limited - India
- Mintek Dendrill Indonesia
- Wilmar Investment Holdings
- Bank of Tokyo Mitsubishi UFJ Ltd
- Maharashtra Electricity Regulatory Commission - India
- Power Finance Corporation Ltd., India
- Lanco Infratech Ltd - India
- Central Java Power - Indonesia
- Global Coal Blending Company Limited - Australia
- India Bulls Power Limited - India
- ICICI Bank Limited - India
- Africa Commodities Group - South Africa
- Coal and Oil Company - UAE
- Therma Luzon, Inc, Philippines
- Edison Trading Spa - Italy
- San Jose City I Power Corp, Philippines
- Agrawal Coal Company - India
- MS Steel International - UAE
- Star Paper Mills Limited - India
- Billiton Holdings Pty Ltd - Australia
- Sarangani Energy Corporation, Philippines
- Samtan Co., Ltd - South Korea
- White Energy Company Limited
- Heidelberg Cement - Germany
- Price Waterhouse Coopers - Russia
- Kobexindo Tractors - Indoneisa
- TeaM Sual Corporation - Philippines
- Maheswari Brothers Coal Limited - India
- Ministry of Transport, Egypt
- Toyota Tsusho Corporation, Japan
- Bahari Cakrawala Sebuku - Indonesia
- SMC Global Power, Philippines
- IEA Clean Coal Centre - UK
- Minerals Council of Australia
- Medco Energi Mining Internasional
- Malabar Cements Ltd - India
- Barasentosa Lestari - Indonesia
- Bukit Baiduri Energy - Indonesia
- OPG Power Generation Pvt Ltd - India
- Electricity Authority, New Zealand
- International Coal Ventures Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Parry Sugars Refinery, India
- Posco Energy - South Korea
- Sree Jayajothi Cements Limited - India
- European Bulk Services B.V. - Netherlands
- Neyveli Lignite Corporation Ltd, - India
- Renaissance Capital - South Africa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Oldendorff Carriers - Singapore
- Indo Tambangraya Megah - Indonesia
- Salva Resources Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Petron Corporation, Philippines
- Mjunction Services Limited - India
- Semirara Mining Corp, Philippines
- Orica Australia Pty. Ltd.
- Essar Steel Hazira Ltd - India
- Meralco Power Generation, Philippines
- Borneo Indobara - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Sindya Power Generating Company Private Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ministry of Finance - Indonesia
- Ambuja Cements Ltd - India
- Savvy Resources Ltd - HongKong
- Makarim & Taira - Indonesia
- Indogreen Group - Indonesia
- PTC India Limited - India
- Eastern Coal Council - USA
- PNOC Exploration Corporation - Philippines
- LBH Netherlands Bv - Netherlands
- Orica Mining Services - Indonesia
- Sakthi Sugars Limited - India
- Simpson Spence & Young - Indonesia
- Rio Tinto Coal - Australia
- London Commodity Brokers - England
- Binh Thuan Hamico - Vietnam
- Rashtriya Ispat Nigam Limited - India
- Coastal Gujarat Power Limited - India
- Kartika Selabumi Mining - Indonesia
- Electricity Generating Authority of Thailand
- The University of Queensland
- Australian Commodity Traders Exchange
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Aboitiz Power Corporation - Philippines
- Economic Council, Georgia
- Bulk Trading Sa - Switzerland
- Bhushan Steel Limited - India
- PetroVietnam Power Coal Import and Supply Company
- GVK Power & Infra Limited - India
- Globalindo Alam Lestari - Indonesia
- The State Trading Corporation of India Ltd
- Merrill Lynch Commodities Europe
- Altura Mining Limited, Indonesia
- Singapore Mercantile Exchange
- Metalloyd Limited - United Kingdom
- Dalmia Cement Bharat India
- Carbofer General Trading SA - India
- Asmin Koalindo Tuhup - Indonesia
- Indika Energy - Indonesia
- Mercuria Energy - Indonesia
- Videocon Industries ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Kideco Jaya Agung - Indonesia
- Baramulti Group, Indonesia
- GMR Energy Limited - India
- Chamber of Mines of South Africa
- McConnell Dowell - Australia
- Alfred C Toepfer International GmbH - Germany
- Vedanta Resources Plc - India
- CIMB Investment Bank - Malaysia
- Karaikal Port Pvt Ltd - India
- Australian Coal Association
- PowerSource Philippines DevCo
- Cigading International Bulk Terminal - Indonesia
- Ind-Barath Power Infra Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Siam City Cement - Thailand
- Meenaskhi Energy Private Limited - India
- GN Power Mariveles Coal Plant, Philippines
- IHS Mccloskey Coal Group - USA
- Karbindo Abesyapradhi - Indoneisa
- The Treasury - Australian Government
- Kepco SPC Power Corporation, Philippines
- Georgia Ports Authority, United States
- Directorate General of MIneral and Coal - Indonesia
- Anglo American - United Kingdom
- Commonwealth Bank - Australia
- Vijayanagar Sugar Pvt Ltd - India
- Central Electricity Authority - India
- Riau Bara Harum - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Cement Manufacturers Association - India
- Madhucon Powers Ltd - India
- Latin American Coal - Colombia
- Marubeni Corporation - India
- CNBM International Corporation - China
- Iligan Light & Power Inc, Philippines
- Ministry of Mines - Canada
- Antam Resourcindo - Indonesia
- Wood Mackenzie - Singapore
- Indonesian Coal Mining Association
- Leighton Contractors Pty Ltd - Australia
- Kohat Cement Company Ltd. - Pakistan
- ASAPP Information Group - India
- Larsen & Toubro Limited - India
- Directorate Of Revenue Intelligence - India
- Sinarmas Energy and Mining - Indonesia
- Thai Mozambique Logistica
- Tamil Nadu electricity Board
- Jindal Steel & Power Ltd - India
- Kaltim Prima Coal - Indonesia
- Indian Energy Exchange, India
- Indian Oil Corporation Limited
- Kapuas Tunggal Persada - Indonesia
- Bharathi Cement Corporation - India
- Timah Investasi Mineral - Indoneisa
- Bukit Makmur.PT - Indonesia
- Banpu Public Company Limited - Thailand
- Bhoruka Overseas - Indonesia
- Uttam Galva Steels Limited - India
- New Zealand Coal & Carbon
- Gujarat Electricity Regulatory Commission - India
- Planning Commission, India
- Pipit Mutiara Jaya. PT, Indonesia
- SMG Consultants - Indonesia
- Chettinad Cement Corporation Ltd - India
- Interocean Group of Companies - India
- SN Aboitiz Power Inc, Philippines
- Bhatia International Limited - India
- Manunggal Multi Energi - Indonesia
- Bangladesh Power Developement Board
- GAC Shipping (India) Pvt Ltd
- Offshore Bulk Terminal Pte Ltd, Singapore
- Aditya Birla Group - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Thiess Contractors Indonesia
- Eastern Energy - Thailand
- Port Waratah Coal Services - Australia
- South Luzon Thermal Energy Corporation
- Holcim Trading Pte Ltd - Singapore
- Sojitz Corporation - Japan
- Miang Besar Coal Terminal - Indonesia
- Bayan Resources Tbk. - Indonesia
- Deloitte Consulting - India
- Grasim Industreis Ltd - India
- VISA Power Limited - India
- Energy Link Ltd, New Zealand
- Energy Development Corp, Philippines
- Global Green Power PLC Corporation, Philippines
- Coalindo Energy - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Straits Asia Resources Limited - Singapore
- Xindia Steels Limited - India
- Tata Chemicals Ltd - India
- Romanian Commodities Exchange
- Trasteel International SA, Italy
- Standard Chartered Bank - UAE
- Formosa Plastics Group - Taiwan
- Petrochimia International Co. Ltd.- Taiwan
- Intertek Mineral Services - Indonesia
- Goldman Sachs - Singapore
- Vizag Seaport Private Limited - India
- Semirara Mining and Power Corporation, Philippines
- Parliament of New Zealand
- Global Business Power Corporation, Philippines
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