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Saturday, 13 April 19
IMO 2020 - DON'T SCRUB IT! - IVAR MYKLEBUST
 KNOWLEDGE TO ELEVATE
Höegh Autoliners stands firm on its decision not to implement scrubbers but comply with the IMO 2020 regulations by using Very Low Sulphur Fuel Oil or Low Sulphur Marine Gas Oil. In this interview; CEO, Ivar Myklebust gives more background to the decision.
“We have ordered zero scrubbers and will order no more”, says Ivar Myklebust, CEO of Höegh Autoliners. ”There are many reasons to why we have decided against scrubbers”.
Moving the problem from air to sea
“First of all, the reasoning behind the IMO 2020 regulation is to reduce emissions from the global trading fleet. I am not so sure scrubbers will support that mission”, Ivar says.
A scrubber works as a cleaning entity on board; it cleans the exhaust from particulates before the exhaust is emitted to the air. However, the residual does not go away, and the scrubber systems wash this in to the sea.
“Surely, scrubbers will reduce emissions to air, but it appears as it will just move the emissions to the sea instead.” Ivar says.
Scrubbers increase the fuel usage
He continues: “Implementing a scrubber can actually end up increasing the Co2 footprint of a vessel. The scrubber adds weight to the vessel and requires tens of thousands of tons of water to wash through the systems each day. This requires energy and energy comes from burning more fuel, in this case High Sulphur Fuel.”
Port areas are banning scrubbers
Another reason for deciding against scrubbers is that ports have already started to ban open loop scrubber. Shanghai wider port area and Singapore are two ports that have implemented the ban and it is quite likely that Sulfur Emission Control Areas (SECAs) will follow. The Port of Fujairah is furthermore forbidding the discharge of wastewater with sulphur.
“If this is a trend it is impossible to say, but it looks like more ports will follow”, Ivar says. “Considering that each of Höegh Autoliners’ vessels, spend 60-70 days in ports annually, often in areas where scrubbers are banned, it makes little sense for us to invest in scrubbers.“
Vessel design
“Structurally, Pure Car and Truck Carriers are also not ideal for scrubbers. Fourteen decks high, it is challenging to put in a scrubber that should go from the engine room up through the whole vessel to the chimney.” Ivar says.
In-efficient industry model
Then there is the point of doing what you do best. Refineries are set to refine oil at large scale and do it efficiently. All logic says that having 70 000 mini-refineries sailing around the globe is not the most efficient way of dealing with the new give.
“Why focus on using a product that will be banned?” Ivar questions, aiming at the High Sulphur Fuel that the scrubber advocates will continue using. “I want to hear from the refineries how they will secure us with sufficient supply of a product that is legal, namely the Very Low Sulphur Fuel Oil and Low Sulphur Marine Gas Oil.”
Bunker Adjustment Factor
No matter how you do it, transporting cargo by sea will be more expensive from 1 January 2020. Those that invest in scrubbers will need their investments to be paid off and for those using Very Low Sulphur Fuel Oil or Low Sulphur Marine Gas Oil, the fuel will be considerably more expensive.
“With shipping rates already down at unsustainable levels in the RoRo industry, this is not a cost that can be carried by the shipping lines.” Ivar says. “In our industry, the standard is to share the risk and return of bunker price shifts with the customers, through a Bunker Adjustment Factor in the contracts. Focus is now on assuring that all our contracts reflect the new standard bunker point, as we approach end of 2019.”
Source: Höegh Autoliners
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Sunday, 28 April 19
SUPRAMAX: A 54,000DWT VESSEL OPEN GRESIK FIXED VIA AUSTRALIA, REDELIVERY CHINA, IN THE MID $12,000S - BALTIC BRIEFING
Capesize
Following the holidays, activity increased in both the Pacific and Atlantic Basins. The 5TC average rallied, closing at $8,596, up $1, ...
Wednesday, 24 April 19
PANAMAX: IN THE EAST, THE MARKET MOVED SIDE-WAYS, WITH FEWER COAL CARGOES FROM INDONESIA PUTTING PRESSURE ON RATES - INTERMODAL
Sentiment in the Dry Bulk market slowly but steadily kept improving last week as Capesize rates remained in recovery mode and Panamax earnings also ...
Wednesday, 24 April 19
SHIPPING MARKET INSIGHT - IS THIS A BANKERS' MARKET? - INTERMODAL
Over the last 10 years, many of the traditional and top lending banks have made the decision to either downsize their portfolios or even exit shipp ...
Monday, 22 April 19
COAL INDIA TO ASK POWER PLANTS TO CUT COAL IMPORTS - DNA
Co to encourage import substitution with domestic supplies at power plants
Surge in coal imports has now forced Coal India Ltd (CIL) ...
Thursday, 18 April 19
BIMCO SEES HARD TIMES AHEAD FOR CAPESIZES
China’s increased use of scrap metal for its production of crude steel is fundamentally critical to the dry bulk shipping industry. Mostly Ca ...
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Showing 1411 to 1415 news of total 6871 |
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- Electricity Generating Authority of Thailand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Jaiprakash Power Ventures ltd
- Xindia Steels Limited - India
- Bulk Trading Sa - Switzerland
- Asia Pacific Energy Resources Ventures Inc, Philippines
- MS Steel International - UAE
- PowerSource Philippines DevCo
- London Commodity Brokers - England
- International Coal Ventures Pvt Ltd - India
- Parliament of New Zealand
- ICICI Bank Limited - India
- Mintek Dendrill Indonesia
- Holcim Trading Pte Ltd - Singapore
- Sical Logistics Limited - India
- Sindya Power Generating Company Private Ltd
- Riau Bara Harum - Indonesia
- OPG Power Generation Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- San Jose City I Power Corp, Philippines
- Orica Australia Pty. Ltd.
- Economic Council, Georgia
- Cigading International Bulk Terminal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Kideco Jaya Agung - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Anglo American - United Kingdom
- New Zealand Coal & Carbon
- Petrochimia International Co. Ltd.- Taiwan
- Romanian Commodities Exchange
- Lanco Infratech Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Antam Resourcindo - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- AsiaOL BioFuels Corp., Philippines
- IEA Clean Coal Centre - UK
- GAC Shipping (India) Pvt Ltd
- Marubeni Corporation - India
- Makarim & Taira - Indonesia
- Central Java Power - Indonesia
- Formosa Plastics Group - Taiwan
- Bukit Makmur.PT - Indonesia
- Central Electricity Authority - India
- Bukit Baiduri Energy - Indonesia
- Wood Mackenzie - Singapore
- Ministry of Finance - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Billiton Holdings Pty Ltd - Australia
- Edison Trading Spa - Italy
- SN Aboitiz Power Inc, Philippines
- Jindal Steel & Power Ltd - India
- IHS Mccloskey Coal Group - USA
- VISA Power Limited - India
- Global Green Power PLC Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Chamber of Mines of South Africa
- Coastal Gujarat Power Limited - India
- Heidelberg Cement - Germany
- Eastern Energy - Thailand
- Indo Tambangraya Megah - Indonesia
- Bhoruka Overseas - Indonesia
- Agrawal Coal Company - India
- Samtan Co., Ltd - South Korea
- The Treasury - Australian Government
- Bayan Resources Tbk. - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Indian Oil Corporation Limited
- European Bulk Services B.V. - Netherlands
- Commonwealth Bank - Australia
- Pendopo Energi Batubara - Indonesia
- ASAPP Information Group - India
- Siam City Cement PLC, Thailand
- Toyota Tsusho Corporation, Japan
- Medco Energi Mining Internasional
- Eastern Coal Council - USA
- Iligan Light & Power Inc, Philippines
- Bhushan Steel Limited - India
- LBH Netherlands Bv - Netherlands
- Posco Energy - South Korea
- Ambuja Cements Ltd - India
- Global Coal Blending Company Limited - Australia
- Alfred C Toepfer International GmbH - Germany
- Mjunction Services Limited - India
- Directorate Of Revenue Intelligence - India
- India Bulls Power Limited - India
- CNBM International Corporation - China
- Port Waratah Coal Services - Australia
- Indogreen Group - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Kartika Selabumi Mining - Indonesia
- Energy Development Corp, Philippines
- GVK Power & Infra Limited - India
- Kepco SPC Power Corporation, Philippines
- Independent Power Producers Association of India
- Oldendorff Carriers - Singapore
- Directorate General of MIneral and Coal - Indonesia
- Deloitte Consulting - India
- GN Power Mariveles Coal Plant, Philippines
- Sojitz Corporation - Japan
- Sinarmas Energy and Mining - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Aboitiz Power Corporation - Philippines
- Global Business Power Corporation, Philippines
- McConnell Dowell - Australia
- South Luzon Thermal Energy Corporation
- Sree Jayajothi Cements Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Altura Mining Limited, Indonesia
- Metalloyd Limited - United Kingdom
- Coal and Oil Company - UAE
- Star Paper Mills Limited - India
- Borneo Indobara - Indonesia
- Semirara Mining Corp, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Binh Thuan Hamico - Vietnam
- Bangladesh Power Developement Board
- Siam City Cement - Thailand
- Georgia Ports Authority, United States
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- SMG Consultants - Indonesia
- Larsen & Toubro Limited - India
- Intertek Mineral Services - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Malabar Cements Ltd - India
- Standard Chartered Bank - UAE
- Timah Investasi Mineral - Indoneisa
- Singapore Mercantile Exchange
- Mercator Lines Limited - India
- Petron Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Carbofer General Trading SA - India
- Orica Mining Services - Indonesia
- Tamil Nadu electricity Board
- Baramulti Group, Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Trasteel International SA, Italy
- Bharathi Cement Corporation - India
- Bhatia International Limited - India
- Banpu Public Company Limited - Thailand
- Australian Coal Association
- Barasentosa Lestari - Indonesia
- Parry Sugars Refinery, India
- PNOC Exploration Corporation - Philippines
- Karaikal Port Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- The University of Queensland
- Globalindo Alam Lestari - Indonesia
- Meralco Power Generation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Indian Energy Exchange, India
- Savvy Resources Ltd - HongKong
- Vijayanagar Sugar Pvt Ltd - India
- Sakthi Sugars Limited - India
- Rashtriya Ispat Nigam Limited - India
- Merrill Lynch Commodities Europe
- Planning Commission, India
- Sarangani Energy Corporation, Philippines
- Kumho Petrochemical, South Korea
- Videocon Industries ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Interocean Group of Companies - India
- Ceylon Electricity Board - Sri Lanka
- Maheswari Brothers Coal Limited - India
- Simpson Spence & Young - Indonesia
- Straits Asia Resources Limited - Singapore
- Uttam Galva Steels Limited - India
- Dalmia Cement Bharat India
- Ministry of Transport, Egypt
- Attock Cement Pakistan Limited
- Coalindo Energy - Indonesia
- Cement Manufacturers Association - India
- Thai Mozambique Logistica
- Rio Tinto Coal - Australia
- Vedanta Resources Plc - India
- SMC Global Power, Philippines
- Energy Link Ltd, New Zealand
- PTC India Limited - India
- Ministry of Mines - Canada
- Madhucon Powers Ltd - India
- White Energy Company Limited
- Tata Chemicals Ltd - India
- Gujarat Sidhee Cement - India
- Essar Steel Hazira Ltd - India
- Wilmar Investment Holdings
- Miang Besar Coal Terminal - Indonesia
- Renaissance Capital - South Africa
- Kapuas Tunggal Persada - Indonesia
- GMR Energy Limited - India
- Latin American Coal - Colombia
- Indonesian Coal Mining Association
- Kaltim Prima Coal - Indonesia
- Vizag Seaport Private Limited - India
- Minerals Council of Australia
- Mercuria Energy - Indonesia
- Thiess Contractors Indonesia
- Aditya Birla Group - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Manunggal Multi Energi - Indonesia
- Grasim Industreis Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Indika Energy - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Electricity Authority, New Zealand
- Australian Commodity Traders Exchange
- Therma Luzon, Inc, Philippines
- Kobexindo Tractors - Indoneisa
- Goldman Sachs - Singapore
- The State Trading Corporation of India Ltd
- TeaM Sual Corporation - Philippines
- Price Waterhouse Coopers - Russia
- Africa Commodities Group - South Africa
- Ind-Barath Power Infra Limited - India
- Leighton Contractors Pty Ltd - Australia
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