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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, 02 October 18
PANAMAX: A FURTHER RISE ACROSS ALL MAIN ROUTES THIS WEEK - ALLIED
Capesize
Finally an upward recovery was in sight in the spot market the past few days, after the prolonged negative pressure noted the weeks pr ...
Tuesday, 02 October 18
THE PRICE OF OIL CONTINUES ITS CLIMB AMIDST A SERIES OF CONCERNS REGARDING SUPPLY CONSTRAINTS - GEORGE LAZARIDIS
It has been a busy week for oil traders as the price of oil continues its climb amidst a series of concerns regarding supply constraints.
...
Tuesday, 02 October 18
INDONESIA GETS READY TO MEET INCREASED COAL DEMAND FROM CHINA, FREIGHT TO RESPOND - MIKAL BOE
Indonesian coal suppliers have increased their domestic coal production target by 4.5 percent from a previous 485 million tonnes to a massive 507 m ...
Monday, 01 October 18
SUPRAMAX: A 56,000 DWT FIXED DELIVERY FOR A SURABAYA TRIP WITH REDELIVERY TO WEST COAST INDIA AT $13,500 - THE BALTIC BRIEFING
Capesize
A stop-start market for the big ships with many expectations and few fulfilled. Holidays curtailed trading early in the week, but the ...
Monday, 01 October 18
A NO-DEAL BREXIT WILL UNDOUBTEDLY HAVE CONSEQUENCES FOR IMPORTERS AND EXPORTERS - KATE JONES, THE BALTIC BRIEFING
If you live in the UK, you might be finding it difficult to get away from the Brexit debate. “Hard Brexit”, “soft Brexit”, ...
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Showing 1601 to 1605 news of total 6871 |
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- Globalindo Alam Lestari - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Salva Resources Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Savvy Resources Ltd - HongKong
- Baramulti Group, Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Kepco SPC Power Corporation, Philippines
- SMC Global Power, Philippines
- Sindya Power Generating Company Private Ltd
- Oldendorff Carriers - Singapore
- Latin American Coal - Colombia
- Tamil Nadu electricity Board
- International Coal Ventures Pvt Ltd - India
- Medco Energi Mining Internasional
- Deloitte Consulting - India
- IEA Clean Coal Centre - UK
- Central Electricity Authority - India
- Riau Bara Harum - Indonesia
- Eastern Coal Council - USA
- Marubeni Corporation - India
- Altura Mining Limited, Indonesia
- Kartika Selabumi Mining - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Interocean Group of Companies - India
- Sinarmas Energy and Mining - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Bulk Trading Sa - Switzerland
- Wood Mackenzie - Singapore
- Uttam Galva Steels Limited - India
- Cigading International Bulk Terminal - Indonesia
- Billiton Holdings Pty Ltd - Australia
- GAC Shipping (India) Pvt Ltd
- Siam City Cement PLC, Thailand
- Commonwealth Bank - Australia
- Pendopo Energi Batubara - Indonesia
- TeaM Sual Corporation - Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Trasteel International SA, Italy
- Vedanta Resources Plc - India
- Sree Jayajothi Cements Limited - India
- Leighton Contractors Pty Ltd - Australia
- Therma Luzon, Inc, Philippines
- Formosa Plastics Group - Taiwan
- Renaissance Capital - South Africa
- Bahari Cakrawala Sebuku - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Jorong Barutama Greston.PT - Indonesia
- Planning Commission, India
- IHS Mccloskey Coal Group - USA
- Directorate General of MIneral and Coal - Indonesia
- Mercuria Energy - Indonesia
- Sakthi Sugars Limited - India
- Meralco Power Generation, Philippines
- South Luzon Thermal Energy Corporation
- PTC India Limited - India
- Parliament of New Zealand
- Ministry of Mines - Canada
- Kohat Cement Company Ltd. - Pakistan
- MS Steel International - UAE
- Aditya Birla Group - India
- OPG Power Generation Pvt Ltd - India
- CNBM International Corporation - China
- Edison Trading Spa - Italy
- Kaltim Prima Coal - Indonesia
- Tata Chemicals Ltd - India
- Metalloyd Limited - United Kingdom
- Rashtriya Ispat Nigam Limited - India
- Standard Chartered Bank - UAE
- Singapore Mercantile Exchange
- Xindia Steels Limited - India
- India Bulls Power Limited - India
- Independent Power Producers Association of India
- Merrill Lynch Commodities Europe
- Meenaskhi Energy Private Limited - India
- Antam Resourcindo - Indonesia
- Electricity Authority, New Zealand
- Indian Oil Corporation Limited
- Chamber of Mines of South Africa
- Central Java Power - Indonesia
- Thai Mozambique Logistica
- PNOC Exploration Corporation - Philippines
- Maheswari Brothers Coal Limited - India
- Bhushan Steel Limited - India
- McConnell Dowell - Australia
- Power Finance Corporation Ltd., India
- LBH Netherlands Bv - Netherlands
- Indian Energy Exchange, India
- Jindal Steel & Power Ltd - India
- Indika Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- The State Trading Corporation of India Ltd
- Holcim Trading Pte Ltd - Singapore
- Siam City Cement - Thailand
- Petrochimia International Co. Ltd.- Taiwan
- Essar Steel Hazira Ltd - India
- Goldman Sachs - Singapore
- GVK Power & Infra Limited - India
- Toyota Tsusho Corporation, Japan
- Lanco Infratech Ltd - India
- Aboitiz Power Corporation - Philippines
- Madhucon Powers Ltd - India
- SMG Consultants - Indonesia
- Grasim Industreis Ltd - India
- Bhoruka Overseas - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bayan Resources Tbk. - Indonesia
- Indo Tambangraya Megah - Indonesia
- Coastal Gujarat Power Limited - India
- Banpu Public Company Limited - Thailand
- Orica Australia Pty. Ltd.
- Global Coal Blending Company Limited - Australia
- Electricity Generating Authority of Thailand
- Gujarat Electricity Regulatory Commission - India
- Price Waterhouse Coopers - Russia
- GMR Energy Limited - India
- Anglo American - United Kingdom
- Star Paper Mills Limited - India
- PowerSource Philippines DevCo
- AsiaOL BioFuels Corp., Philippines
- Energy Link Ltd, New Zealand
- Samtan Co., Ltd - South Korea
- Petron Corporation, Philippines
- VISA Power Limited - India
- Ministry of Transport, Egypt
- Bangladesh Power Developement Board
- Semirara Mining Corp, Philippines
- Malabar Cements Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Australian Commodity Traders Exchange
- Vijayanagar Sugar Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Carbofer General Trading SA - India
- European Bulk Services B.V. - Netherlands
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Chettinad Cement Corporation Ltd - India
- Thiess Contractors Indonesia
- Krishnapatnam Port Company Ltd. - India
- Jaiprakash Power Ventures ltd
- ASAPP Information Group - India
- Posco Energy - South Korea
- Cement Manufacturers Association - India
- Videocon Industries ltd - India
- Sical Logistics Limited - India
- Global Business Power Corporation, Philippines
- Indogreen Group - Indonesia
- Coal and Oil Company - UAE
- Wilmar Investment Holdings
- ICICI Bank Limited - India
- Gujarat Sidhee Cement - India
- Bukit Baiduri Energy - Indonesia
- Mercator Lines Limited - India
- SN Aboitiz Power Inc, Philippines
- Sarangani Energy Corporation, Philippines
- Coalindo Energy - Indonesia
- New Zealand Coal & Carbon
- Timah Investasi Mineral - Indoneisa
- Agrawal Coal Company - India
- Intertek Mineral Services - Indonesia
- Rio Tinto Coal - Australia
- Iligan Light & Power Inc, Philippines
- Mintek Dendrill Indonesia
- Port Waratah Coal Services - Australia
- Karaikal Port Pvt Ltd - India
- Ministry of Finance - Indonesia
- Sojitz Corporation - Japan
- TNB Fuel Sdn Bhd - Malaysia
- Ambuja Cements Ltd - India
- Borneo Indobara - Indonesia
- London Commodity Brokers - England
- Barasentosa Lestari - Indonesia
- Orica Mining Services - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Parry Sugars Refinery, India
- Bharathi Cement Corporation - India
- Ind-Barath Power Infra Limited - India
- Economic Council, Georgia
- Minerals Council of Australia
- Vizag Seaport Private Limited - India
- Global Green Power PLC Corporation, Philippines
- Attock Cement Pakistan Limited
- Karbindo Abesyapradhi - Indoneisa
- GN Power Mariveles Coal Plant, Philippines
- Dalmia Cement Bharat India
- Simpson Spence & Young - Indonesia
- CIMB Investment Bank - Malaysia
- Indonesian Coal Mining Association
- The University of Queensland
- Energy Development Corp, Philippines
- Kideco Jaya Agung - Indonesia
- Georgia Ports Authority, United States
- Binh Thuan Hamico - Vietnam
- Neyveli Lignite Corporation Ltd, - India
- Bukit Makmur.PT - Indonesia
- Eastern Energy - Thailand
- Heidelberg Cement - Germany
- Kalimantan Lumbung Energi - Indonesia
- Kobexindo Tractors - Indoneisa
- Africa Commodities Group - South Africa
- The Treasury - Australian Government
- White Energy Company Limited
- PetroVietnam Power Coal Import and Supply Company
- Makarim & Taira - Indonesia
- San Jose City I Power Corp, Philippines
- Kapuas Tunggal Persada - Indonesia
- Romanian Commodities Exchange
- Larsen & Toubro Limited - India
- Directorate Of Revenue Intelligence - India
- Mjunction Services Limited - India
- Manunggal Multi Energi - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kumho Petrochemical, South Korea
- Pipit Mutiara Jaya. PT, Indonesia
- Australian Coal Association
- Bhatia International Limited - India
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