We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Wednesday, 13 July 22
MARKET INSIGHT - INTERMODAL
 Taking the previous market insight a step further, market sentiment remains bullish regarding the overall ROI of scrubbers, facing tailwinds from a surprisingly favorable Hi-5 spread. Under a blurred setting regarding the direction and efficiency of alternative fuels and the current geopolitical disruptions, owners tend to adopt a medium-term approach to the evaluation of their investment towards decarbonization, rather than a long-term which might be overturned.
Recent studies have shown that running on HSFO and on a scrubber produces way lower emissions than running on LSMGO, further confirming the viability of a scrubber investment. Currently, owners who will drydock their vessels soon are increasingly considering investing in pollution abatement technology, in return for the benefits from the expected savings in the bunkering costs.
Coming down to the decision-making, the choice of scrubber type is a key factor that shapes the fitting cost but will mostly affect future savings and compliance with changing regulations. While most vessels carry open-loop scrubbers, many vessels fitted now opt for hybrid types, which offer increased flexibility for operation in all areas, regardless of ECA’s constraining rules or seawater alkalinity. Technological investments have a special mechanism of assessment, therefore, payback period, level of risk, tax prospects and expected inflation should be considered. The main criteria regarding the justification of a scrubber investment should be the ROI (including CAPEX & OPEX), the space occupied, and the weight, with horizontal scrubbers weighting less and covering less space compared to vertical ones, thus, minimizing the impact on a vessel’s cargo-carrying capacity and its profitability. Due to the funding difference of the technology implementation, the terms of inflows (fuel savings) and outflows (CAPEX & OPEX) should be identified, while the determining factor will be the maximum payback period.
Currently, owners who have already invested in scrubbers are enjoying a high ROI, while benefiting from more than $500/t Hi-5 spreads. For instance, in Singapore it was assessed at an all-time high of $569.50/t on July 5th, creating, therefore, the perfect scenario for scrubber-equipped ships. In Fujairah, the set-up is pretty much similar with the spread fluctuating close to the $500/t range. While HSFO markets in Asia have been weakening on the back of sanctions on Urals crude in Europe and the US, VLSFO markets are seeing a tight supply as refineries have been utilizing sweeter crude to maximize gasoline production to meet the demand for the peak driving season in the US and due to the expanded regional turnaround and strong gasoline cracks.
At the moment, retrofitting times vary between 30 and 50 days, which is important to consider under the current market conditions. According to our data, retrofits now take place at a slower pace, while during 1H of 2022 only 3.7% of newbuilt vessels are scrubber fitted, compared to 13.9% during 1H of 2021. Since investments in technology are capital intensive, owners tend to keep a more conservative stance and ensure a balance in their fleets, until clarity is given on what will be the most cost-efficient and dominant compliant method.
By Chara Georgousi,
Research Analyst
Compiled by:
Intermodal Research & Valuations
Analysts:
Yiannis Parganas
Tamara Apostolou
Disclaimer and legal disclosure: For any further queries please do not hesitate to contact our Research & Valuations Department. The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no reproducing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.
The Information contained within the website of COALspot.com is intended for informational purposes only and is not intended as professional counsel and should not be used as such.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Thursday, 26 May 22
MARKET INSIGHT - INTERMODAL
The newbuilding market activity has been significantly positive from a dry bulk owner perspective during the first half of 2022. Indeed, the contra ...
Wednesday, 18 May 22
INDONESIAN COAL PRICE REFERENCE DROPPED 4.42% IN MAY
COALspot.com: Indonesian Coal Price Reference for May delivery drops 4.42 per cent month on month.
The Indonesian Coal Price Referen ...
Thursday, 12 May 22
MARKET INSIGHT - INTERMODAL
Almost through half of the year, the overall shipping market continues to show signs of healthiness, after plenty of festivities and holidays that ...
Wednesday, 27 April 22
EUROPEAN UNION'S LNG IMPORTS - BANCHERO COSTA
In 2021, the European Union (27) was the third largest seaborne importer of LNG in the world, with a 15.8% share.
It followed Mainla ...
Tuesday, 26 April 22
CHINA'S APPETITE FOR BAUXITE HITS NEW RECORD AS Q1 IMPORTS JUMP 15.4% Y/Y - BIMCO
Bauxite shipments arriving in China hit new record levels in the first quarter of 2022 and grew at an average annual rate of 12.8% between 2017 and ...
|
|
|
Showing 321 to 325 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- PTC India Limited - India
- Directorate Of Revenue Intelligence - India
- Karbindo Abesyapradhi - Indoneisa
- Grasim Industreis Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Kobexindo Tractors - Indoneisa
- Economic Council, Georgia
- Commonwealth Bank - Australia
- Jindal Steel & Power Ltd - India
- Vedanta Resources Plc - India
- Goldman Sachs - Singapore
- Electricity Generating Authority of Thailand
- CIMB Investment Bank - Malaysia
- Sindya Power Generating Company Private Ltd
- Bahari Cakrawala Sebuku - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Deloitte Consulting - India
- CNBM International Corporation - China
- Formosa Plastics Group - Taiwan
- LBH Netherlands Bv - Netherlands
- Jorong Barutama Greston.PT - Indonesia
- Samtan Co., Ltd - South Korea
- Mintek Dendrill Indonesia
- Metalloyd Limited - United Kingdom
- SMC Global Power, Philippines
- Karaikal Port Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Altura Mining Limited, Indonesia
- Star Paper Mills Limited - India
- Australian Coal Association
- Tamil Nadu electricity Board
- Antam Resourcindo - Indonesia
- Minerals Council of Australia
- Baramulti Group, Indonesia
- Electricity Authority, New Zealand
- Posco Energy - South Korea
- Medco Energi Mining Internasional
- Therma Luzon, Inc, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kapuas Tunggal Persada - Indonesia
- Bhatia International Limited - India
- Manunggal Multi Energi - Indonesia
- Chamber of Mines of South Africa
- Uttam Galva Steels Limited - India
- Thai Mozambique Logistica
- Meenaskhi Energy Private Limited - India
- Savvy Resources Ltd - HongKong
- The University of Queensland
- Cigading International Bulk Terminal - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Carbofer General Trading SA - India
- Indian Energy Exchange, India
- Bayan Resources Tbk. - Indonesia
- European Bulk Services B.V. - Netherlands
- Malabar Cements Ltd - India
- Singapore Mercantile Exchange
- Sree Jayajothi Cements Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Mercator Lines Limited - India
- Australian Commodity Traders Exchange
- Siam City Cement PLC, Thailand
- Kepco SPC Power Corporation, Philippines
- Bhushan Steel Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indo Tambangraya Megah - Indonesia
- Dalmia Cement Bharat India
- Bangladesh Power Developement Board
- Global Business Power Corporation, Philippines
- Indika Energy - Indonesia
- ICICI Bank Limited - India
- Ambuja Cements Ltd - India
- GAC Shipping (India) Pvt Ltd
- Timah Investasi Mineral - Indoneisa
- Essar Steel Hazira Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Xindia Steels Limited - India
- GMR Energy Limited - India
- Rashtriya Ispat Nigam Limited - India
- Barasentosa Lestari - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- VISA Power Limited - India
- Aboitiz Power Corporation - Philippines
- Madhucon Powers Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Leighton Contractors Pty Ltd - Australia
- Jaiprakash Power Ventures ltd
- Simpson Spence & Young - Indonesia
- Straits Asia Resources Limited - Singapore
- Meralco Power Generation, Philippines
- Coal and Oil Company - UAE
- ASAPP Information Group - India
- Independent Power Producers Association of India
- Aditya Birla Group - India
- Tata Chemicals Ltd - India
- Central Java Power - Indonesia
- IEA Clean Coal Centre - UK
- Ministry of Mines - Canada
- Anglo American - United Kingdom
- Semirara Mining Corp, Philippines
- Merrill Lynch Commodities Europe
- Pendopo Energi Batubara - Indonesia
- Romanian Commodities Exchange
- San Jose City I Power Corp, Philippines
- Banpu Public Company Limited - Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Makarim & Taira - Indonesia
- Kideco Jaya Agung - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- White Energy Company Limited
- Mjunction Services Limited - India
- Ministry of Finance - Indonesia
- Riau Bara Harum - Indonesia
- Kaltim Prima Coal - Indonesia
- Edison Trading Spa - Italy
- IHS Mccloskey Coal Group - USA
- International Coal Ventures Pvt Ltd - India
- Global Coal Blending Company Limited - Australia
- Indian Oil Corporation Limited
- Sinarmas Energy and Mining - Indonesia
- Eastern Coal Council - USA
- The Treasury - Australian Government
- Rio Tinto Coal - Australia
- Global Green Power PLC Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Bulk Trading Sa - Switzerland
- GVK Power & Infra Limited - India
- Parry Sugars Refinery, India
- Thiess Contractors Indonesia
- Africa Commodities Group - South Africa
- Iligan Light & Power Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Oldendorff Carriers - Singapore
- London Commodity Brokers - England
- Vizag Seaport Private Limited - India
- Parliament of New Zealand
- Eastern Energy - Thailand
- Bharathi Cement Corporation - India
- Videocon Industries ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- SN Aboitiz Power Inc, Philippines
- Petron Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- New Zealand Coal & Carbon
- Kohat Cement Company Ltd. - Pakistan
- Wilmar Investment Holdings
- Standard Chartered Bank - UAE
- Renaissance Capital - South Africa
- Alfred C Toepfer International GmbH - Germany
- Sical Logistics Limited - India
- Energy Link Ltd, New Zealand
- PNOC Exploration Corporation - Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Siam City Cement - Thailand
- Toyota Tsusho Corporation, Japan
- Bhoruka Overseas - Indonesia
- Power Finance Corporation Ltd., India
- TNB Fuel Sdn Bhd - Malaysia
- Attock Cement Pakistan Limited
- Globalindo Alam Lestari - Indonesia
- Cement Manufacturers Association - India
- Coalindo Energy - Indonesia
- Intertek Mineral Services - Indonesia
- Heidelberg Cement - Germany
- Ministry of Transport, Egypt
- Miang Besar Coal Terminal - Indonesia
- Interocean Group of Companies - India
- Maheswari Brothers Coal Limited - India
- South Luzon Thermal Energy Corporation
- SMG Consultants - Indonesia
- Orica Mining Services - Indonesia
- Port Waratah Coal Services - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Sojitz Corporation - Japan
- PowerSource Philippines DevCo
- Georgia Ports Authority, United States
- Gujarat Sidhee Cement - India
- Agrawal Coal Company - India
- Asmin Koalindo Tuhup - Indonesia
- Indonesian Coal Mining Association
- Wood Mackenzie - Singapore
- Mercuria Energy - Indonesia
- Borneo Indobara - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- India Bulls Power Limited - India
- Neyveli Lignite Corporation Ltd, - India
- McConnell Dowell - Australia
- MS Steel International - UAE
- Sakthi Sugars Limited - India
- Marubeni Corporation - India
- Price Waterhouse Coopers - Russia
- Trasteel International SA, Italy
- Central Electricity Authority - India
- AsiaOL BioFuels Corp., Philippines
- Ind-Barath Power Infra Limited - India
- Salva Resources Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Gujarat Electricity Regulatory Commission - India
- Indogreen Group - Indonesia
- Orica Australia Pty. Ltd.
- Kumho Petrochemical, South Korea
- Planning Commission, India
- Bukit Baiduri Energy - Indonesia
- Coastal Gujarat Power Limited - India
- Energy Development Corp, Philippines
- Sarangani Energy Corporation, Philippines
- Lanco Infratech Ltd - India
- OPG Power Generation Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Latin American Coal - Colombia
- Binh Thuan Hamico - Vietnam
- Larsen & Toubro Limited - India
- TeaM Sual Corporation - Philippines
- Chettinad Cement Corporation Ltd - India
|
| |
| |
|
