Maiko Nakashima of global energy and commodity price reporting agency Argus Media on Monday (15 February) published a summary on market developments that resulted in increased HSFO demand in Japan:
Japanese high-sulphur fuel oil (HSFO) demand is gradually rising in line with an increase in the number of vessels fitted with scrubbers.
Japan’s HSFO sales have increased to around 20-25pc of the country’s total bonded bunker demand, from 10-20pc a year earlier, Japanese bunker traders said. Most HSFO supplies are based on long-term contracts, as shipowners look to lock in supplies even after the bulk of the market switched to using very low-sulphur fuel oil (VLSFO) from HSFO following the International Maritime Organization (IMO) 2020 rules.
Major Japanese shipowners chose not to cancel their retro-fit scrubber orders, even when the spread between HSFO and VLSFO prices collapsed during the second quarter of last year because of the Covid-19 pandemic. VLSFO’s premium to HSFO narrowed to just $13/t in June 2020 from $345/t in January.
Japanese bonded marine fuel sales totalled 92,000 b/d of in December, up by 13.6pc from a year earlier and higher up by 1.1pc from November, the latest data released by Japan’s trade and industry (Meti) today show.
Japan’s bonded bunker consumption hit 32.2mn bl (88,000 b/d) in 2020, up by 12.5pc from 2019.
Photo credit and source: Argus Media
Published: 16 February, 2021
Forms commercial management agreement with Maersk Tankers and joint venture with V.Group to create a new company, both effective 1 April onwards.
‘The ship has sailed and the destination is 2020,’ says International Bunker Industry Association.
Compared to the existing local barge fleet, Monjasa Supplier’s rough weather capabilities significantly reduces idle time for large vessels by 24-48 hours.
Four bunkering vessels will deliver fuel oil while remaining ship will handle MGO operations, says Hin Leong bunkering arm.
Hainan Maritime Safety Administration supervised a total of 420 bonded oil bunkering operations in 2021, representing an increase of 158% from the previous year.
Khaw Boon Wan reassures the industry that the impact of Hin Leong’s financial woes on the industry ‘through credit-tightening on other bunkering players, is manageable’.
Cash of SGD 4.43 million and USD 243,100, and one piece of 100-gram gold-coloured bar recovered in safe belonging to Abdul Latif Bin Ibrahim kept at Extra Space warehouse storage facility, show court documents.
Program introduces periodic assessments, mass flow metering data analysis, and regular training for relevant key personnel to better handle the MFMS to ensure a high level of continuous operational competency.
U.S. Claims Register Summary recorded a total USD 833 million claim from a total 180 creditors against O.W. Bunker USA, according to the creditor list seen by Singapore bunkering publication Manifold Times.
Glencore purchased fuel through Straits Pinnacle which contracted supply from Unicious Energy. Contaminated HSFO was loaded at Khor Fakkan port and shipped to a FSU in Tanjong Pelepas, Malaysia to be further blended.
Individuals were employees of surveying companies engaged by Shell to inspect the volume of oil loaded onto the vessels which Shell supplied oil to; they allegedly accepted bribes totalling at least USD 213,000.
MPA preliminary investigations revealed that the affected marine fuel was supplied by Glencore Singapore Pte Ltd who later sold part of the same cargo to PetroChina International (Singapore) Pte Ltd.
