Oslo-listed shipping company Jinhui Shipping and Transportation (JST) says it will avoid the use of scrubbers and choose to consume low sulphur marine fuel in order to meet the upcoming International Maritime Organization (IMO) imposed 0.5% sulphur limit in 2020.
“One of the most widely debated topics in our industry is the installation of scrubbers to meet the 2020 sulphur cap emission regulation,” says its second quarter (Q2) earnings report.
“We are currently refraining from the installation of scrubbers given the long term technical and commercial viability of scrubbers is yet to be proven, not to mention the investment cost of scrubber has been on the decline where we believe benefit is highly likely to arise with further patience.
“From the environmental perspective, we believe the use of low sulphur fuel is the most efficient way to tackle this issue.
“We expect the availability of such product will become abundant at reasonable costs with time, given the likelihood of an increasing demand.”
JST meanwhile recorded a consolidated net profit of USD $2.8 million in Q2 2018 as compared to a consolidated net loss of USD $784,000 for the corresponding quarter in 2017.
Revenue for the second quarter of 2018 increased 16% to USD $22.1 million compared to USD $19.0 million for the corresponding quarter in 2017.
“The freight market in 2018, especially Supramax has so far been favourable for the Company, with strong support in asset prices underpinned by healthy earnings,” it adds.
“Strong volume of imports by China, overall global recovery in demand for dry commodities and a reduction in newbuilding deliveries all contributed to the continued recovery.
“Supply fundamentals are currently favourable, and at a low point by historical standards, with relatively low incentive to order newbuildings given the uncertainty on how future regulations will evolve and financing costs on the rise.
“Further stability in the operating environment will be reached should a robust demand persist.”
As at 28 August 2018, the JST had 20 owned vessels; the bulk shipping firm is a subsidiary of Jinhui Holdings Company Limited, a company incorporated in Hong Kong and listed on the main board of the Hong Kong Stock Exchange.
Photo credit: EGCSA
Published: 30 August, 2018
Arab Petroleum Investments Corporation weigh effect of regulation on Gulf Cooperation Council countries.
Albert Susilo, an Analyst for the Indonesian shipping sector at shipbroking, analysis and consultancy firms AE Marine and Golden Bay Chartering, provides commentary.
VLSFO was rushed into the maritime industry to meet IMO2020 regulations and it has shown signs of exceeding set safety parameters, reports Forbes.
Publishes analysis: ‘The Effects of Changes to Marine Fuel Sulfur Limits in 2020 on Energy Markets’.
SIP assists ship owners in preparing for the use low sulphur fuels to comply with the 2020 sulphur limit.
IBIA provides points of particular relevance from the recent IMO meeting ended Friday to members.
‘Economics of the shipping market will be the key driver enabling methanol to be adopted at a higher pace going forth over next couple years as market begins to return to more normal rates,’ states COO.
Integr8 Fuel injunction varied by Singapore Court to allow former employees to start work at Hartree Group in December 2022 following failure to produce evidence on biofuels development plans.
Variability of sources can affect the stability and performance of biofuel bunkers produced from these feedstocks, in turn leading to difficulties in meeting regulations and industry standards, shares Bryan Quek.
Top three positive movers in 2022 were Bunker House Petroleum Pte Ltd (+7), Eastpoint International Marketing Pte Ltd (+5), and Eng Hua Company (Pte) Ltd (+6); newcomer Sinopec Fuel Oil (Singapore) gets 19th spot.
Livestock carrier also involved in earlier bunker claim with Glander International Bunkering due to remaining unpaid fuel bill of approximately USD 116,000, according to court documents obtained by Manifold Times.
A blend of standard MGO and biodiesel, MGO B20 is distributed at the company’s floating kiosk CNC 5 which is located off the buoy of West Coast Pier; PS Energy has been stamped with globally recognised ISCC.
