Business

Argus Media: EU ETS could push shipping costs up by $4,000/d

An Aframax tanker could add up to $4,000/d in costs, assuming a 40t/d bunker consumption, emissions of 3.1t of CO2 at an emissions certificate price of €30/t, it said.

Published

6 years ago

October 1, 2020

Admin

Nicolas Kyriakoglou of global energy and commodity price reporting agency Argus Media on Tuesday (22 September) published an article on the legal and cost implications of the EU ETS on the maritime industry as well as some possible alternative bunker fuels that shipowners would uptake to maintain compliance and competitive prices:

The inclusion of shipping in the European Emissions Trading System (EU ETS) could boost costs for shipowners by as much as $4,000/d, as well as increasing pressure on the industry to decarbonise and shift toward greener fuel alternatives, investment firm Clarksons Platou Securities said (Clarksons).

An Aframax tanker could add up to $4,000/d in costs to meet emissions criteria, assuming a 40t/d bunker consumption, emissions of 3.1t of CO2 per tonne of fuel oil consumed at an emissions certificate price of €30/t, Clarksons said. This additional cost would be significant for shipowners trading in the spot market, as operating costs alone for an Aframax tanker are around $6,700/d, Clarksons data show.

The decision of the European Commission to include shipping has also created uncertainty around how the cap-and-trade system would apply to shipowners trading in Europe. Voyages between two European ports would be “100% subject to the ETS”, the firm said. But it remained unclear if the ETS would apply to voyages where only the loading or discharge port is in Europe and if so, whether the whole voyage would be counted or just the portion in European waters.

The uncertainty around the exact EU ETS mechanisms as they relate to shipping has also been a factor in depressed vessel orders. “A wait-and-see attitude has developed in recent years but the commission’s plans seem likely to accelerate decision making” in the industry to find alternative propulsion technologies and cleaner fuels, according to Clarksons.

LNG will likely be the “transition fuel” for the next decade, while ammonia and hydrogen are becoming increasingly “realistic” options, the firm said. Advances in technology will ultimately be tied to new vessel orders. Older vessels are becoming less attractive because of their relative inefficiency, which could incentivise more scrapping in the next few years. Slow-steaming may also be employed to reduce consumption, which would be positive for shipowner earnings, but this strategy also has its limitations as ship efficiency declines further below certain speeds.

Photo credit and source: Argus Media
Published: 1 October, 2020

Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

Published

4 hours ago

July 21, 2026

Admin

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July).

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions.

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Photo credit: Sora Shimazaki
Published: 21 July, 2026

Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

Published

4 hours ago

July 21, 2026

Admin

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Photo credit: Drew Beamer
Published: 21 July, 2026

LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

Published

5 hours ago

July 21, 2026

Admin

PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post.

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024.

Photo credit: Pacific International Lines
Published: 21 July, 2026