Connect with us

Business

Bunker fuel sales dipped 2% at Singapore port in May, experts provide opinion and forecast

‘As the saying goes without people buying things, manufacturing will slow, trade will also slow and shipping movements slows down. It’s a whole chain of reaction,’ says Simon Neo.

Admin

Published

on

SG bunker tanker sailing

Bunker sales at Singapore port fell by 2.0% on year in May 2020, according to data released by the Maritime and Port Authority of Singapore (MPA) on Friday (12 June).

The dip in marine fuel sales was aligned with the expectation of several industry players who believed COVID-19 (Coronavirus Disease 2019) has finally ‘caught up’ with market demand.

“As mentioned in my earlier commentary, May was looking to be a quieter month compared to April,” explained Dennis Ho, Director & Founder of local marine fuel consultancy Azure Strategic Resources.

“Prices in April, which led to ship operators/owners loading up on their bunkers, encountered a sharp correction in the later part of the month. This was followed by a quick recovery of prices in May, with Gasoil MOPS clawing back about 40% from the lows of April.

“These two factors combined probably led to a lower bunker sales volume for the Singapore market in May.  However, if taken into context of the current global economic situation, I would say the bunker market has been quite resilient.”

Ho noted the wider maritime market being buoyed by optimism as countries begin to relax their strict lockdown measures due to COVID-19.

“Positive trade figures from China also brought hope of a possible V-shape recovery, while other financial markets were also bullish,” he said.

“The expectation of OPEC+ to extend their production cuts, which was a development during the end of May, provided more bullish news to the market.”

Ho expects market prices to be volatile moving forward to June.

“The Singapore bunker market will face price competition with regional ports (i.e. Port Klang, Hong Kong and South Korea),” he forecasts.

“Additionally, ex-wharf discounts over cargo prices in June will likely be lower than May due to ample supplies and weaker demand.

“The continued spat between US and China will also weigh on the broader market. Expectations of a prolonged economic downturn will look bearish for the market if mortality continues to increase in the second wave of COVID-19.”

Simon Neo, Executive Director at marine fuels consultancy SDE International, says the drop in Singapore’s bunkering volume during May “is not unexpected”.

“Many major bunker ports around the world also saw a decline in volume [in May]. Less cargoes are being shipped globally due to the showdown in trade and closure of factories caused by COVID-19 and the continued spat between USA and China," he notes.

“This was evident in the number of vessel arrivals to Singapore for May [-43.7% y.o.y.]. Shipping is going through a difficult year, while banks’ tightening of credit facilities have also not helped and most likely this will remain the case going forward.

“The tightening of credit facilities not only affects the shipowners but also the bunker industry as a whole.

“Physical suppliers usually give shipowners or charterers open credit for 30 days after bunkers are delivered to the vessel. With the tightening of credit facilities from the banks to physical suppliers, the group will gradually not be able to supply more volume.

“The industry is facing a slowdown in the whole bunker sector as countries try to open up their trades cautiously to prevent a second wave of COVID-19 into their countries, not forgetting people are buying lesser, going out lesser and travelling much lesser now.

“As the saying goes without people buying things, manufacturing will slow, trade will also slow and shipping movements slows down. It’s a whole chain of reaction.”

Singapore bunker volume

A total 3.92 million metric tonnes (mt) (exact: 3,925,000 mt) of bunkers was sold at the port in May, less than 4.00 million mt (exact: 4,006,500 mt) posted during May 2019.

Deliveries of 500 centistokes (cSt), 380 cSt and 180 cSt grades in May 2020 (against on year), were respectively 100,100 mt (-86.8% from 759,100 mt), 685,200 mt (-75.5% from 2.79 million mt), while 180 cSt product recorded no sales (-100% from 19,600 mt).

Low sulphur 500 cSt, 380 cSt and 180 cSt products respectively recorded 3.5 million mt sales (compared to zero), 1.92 million mt (significantly up from 19,700 mt), and 76,600 mt (+92% from 39,900 mt).

The latest data introduced new categories, namely low sulphur 100 cSt, and ULSFO which respectively recorded 657,200 mt and 58,400 mt of sales in February.

Low sulphur marine gas oil (LS MGO) sales were posted at 351,400 mt (+65.6% from 212,000 mt) and MGO at 72,100 mt (-5.0% from 75,900 mt).

Related: Marine fuel consultants explain Singapore’s 10.8% on year bunker sales increase in April
RelatedSingapore: March 2020 bunker fuel sales rise 5.7% on year
RelatedSingapore: February 2020 bunker sales volume up 2.5% on year
Related: Singapore: January 2020 bunker sales volume up 7.5% on year

 

Photo credit: Manifold Times
Published: 15 June, 2020

Continue Reading

Methanol

China: CHIMBUSCO Jiangsu completes methanol bunkering operation in Taizhou

Firm successfully delivered 79.5 metric tonnes of methanol bunker fuel to container ship “NCL VESTLAND” using a mobile methanol bunkering skid at Taizhou Sanfu Marine Engineering.

Admin

Published

on

By

China: CHIMBUSCO Jiangsu completes methanol bunkering operation in Taizhou

CHIMBUSCO Jiangsu on Tuesday (3 December) said it successfully refuelled the new methanol dual-fuel powered 1,300TEU container ship NCL VESTLAND at Taizhou Sanfu Marine Engineering.

The total amount of methanol bunker fuel delivered to the boxship was 79.5 metric tonnes.

CHIMBUSCO Jiangsu said the implementation of bunkering operation marked a major breakthrough for the company in the application of alternative fuels for ships, marking its ability to supply methanol marine fuel to ships on a regular basis.

A mobile methanol bunkering skid jointly developed by CHIMBUSCO Jiangsu and COSCO (Lianyungang) Liquid Loading & Unloading Equipment was used for the bunkering operation, which was successfully completed in 2.5 hours. 

In a separate statement, COSCO Shipping said the bunkering operation represented CHIMBUSCO Jiangsu’s first marine methanol fuel supply onshore.

The mobile methanol filling skid operates using the pump as its power source to facilitate simultaneous unloading and refuelling tasks. 

This skid includes several key functional modules, each of which is highly integrated. This integration ensures a safe and efficient process for transferring methanol fuel from tankers to a vessel’s fuel bunker, while also enabling seamless operation and intelligent management. 

The mobile methanol filling skid offers flexibility, requires low initial investment, and boasts a rapid bunkering rate of 180 cubic metres (m3) per hour. 

It stands as an optimal solution for methanol bunkering in the era before widespread adoption of methanol bunkering vessels. Additionally, it can provide bunkering support for shipyards to test new vessels and meet the bunkering requirements of the shipyard,” it added. 

 

Photo credit: CHIMBUSCO Jiangsu
Published: 6 December, 2024

Continue Reading

Technology

Singapore: MPA and MISC to integrate digital technologies into marine operations

MoU between the two parties include exchanging data and technology trials between MISC and MPA for tankers through the Just-in-time Planning and Coordination platform under digitalPort@SGTM.

Admin

Published

on

By

Singapore: MPA and MISC to integrate digital technologies into marine operations

The Maritime and Port Authority of Singapore (MPA) on Thursday (5 December) said it has signed a memorandum of understanding (MoU) with MISC to strengthen collaboration in innovation, research and development (R&D) and test-bedding activities, to advance digital transformation in the maritime industry. 

The MoU was signed by Mr David Foo, Assistant Chief Executive (Operations and Operations Technology), MPA, and Mr Mohd Denny Mohd Isa, Vice President, MISC Marine, and witnessed by Mr Teo Eng Dih, Chief Executive, MPA, and Mr Zahid Osman, President and Group Chief Executive Officer, MISC Berhad.

As part of the three-year arrangement, both parties will focus on integrating sustainable digital technologies into marine operations, enhancing processes through data-sharing initiatives and cybersecurity innovations. 

These include exchanging data and technology trials between MISC and MPA for tankers through the Just-in-time Planning and Coordination platform under digitalPort@SGTM, data sharing and cloud services to support the use of e-clearances and e-certificates in the Port of Singapore and onboard Singapore-registered ships and conducting cyber solution trials with the Maritime Cyber Assurance and Operations Centre.

They will also collaborate with Singapore’s vibrant research ecosystem to explore the use of artificial intelligence, digital twins, and semi-autonomous vessel operations to improve shipping efficiency and safety. 

Additionally, the partnership will prioritise talent development, identify emerging skillsets for onshore ship management, upskill seafarers to operate alternative-fuelled vessels, and ensure a future-ready workforce for the maritime industry through training under the Maritime Energy Training Facility. 

Mr Teo Eng Dih, Chief Executive of MPA, said: “MISC, with its expertise in ship management and sustainable shipping practices, is a good partner for MPA to develop solutions to help digitalise and optimise shipping operations. We look forward to deepening our partnership with MISC Marine to transform the work for seafarers and professionals for more resilient and efficient shipping services.”

Mr Zahid Osman, President and Group Chief Executive Officer of MISC Berhad, said: “MISC is proud to partner with the Maritime and Port Authority of Singapore to accelerate the maritime industry’s transition towards a sustainable future. This MoU underscores our shared commitment to harnessing digital innovation, enhancing ship management efficiency, and preparing the workforce for advancements in alternative fuels and cutting-edge technologies.”

 

Photo credit: Maritime and Port Authority of Singapore
Published: 6 December, 2024

Continue Reading

LNG Bunkering

SEA-LNG: Invest more in LNG bunker vessels, supply and liquefaction infrastructure

LNG bunker market, while growing substantially, is lagging and concerns persist regarding the ability to supply the rapidly growing fleet of LNG-fuelled vessels.

Admin

Published

on

By

SEA-LNG: Invest more in LNG bunker vessels, supply and liquefaction infrastructure

Industry coalition SEA-LNG on Thursday (5 December) said that while the approximately 2,200 LNG-fuelled vessels and LNG carriers represent only ‘two minutes into the hour’ of the global fleet of approximately 60,000 deep sea vessels, it remains an adolescent fuel that is maturing significantly faster than other alternative bunker fuels. 

However, it said the LNG pathway still needs more investment, especially in landside facilities for liquefaction near ports, bio and synthetic methane production and bunkering capacity worldwide.

This year has witnessed unprecedented investment in the maturing and scaling of LNG from ship owners.  LNG is starting to dominate as the preferred future fuel pathway. 

However, the bunker market, while growing substantially, is lagging and concerns persist regarding the ability to supply the rapidly growing fleet of LNG-fuelled vessels.

Peter Keller, Chairman, SEA-LNG, said: “With high profile owners now choosing the LNG pathway, we anticipate this trend will continue and accelerate through 2025 and beyond.”

“As the various alternative fuel pathways mature, there is a growing realisation that, despite previous aspirations, some alternative fuel pathways – like the LNG pathway – are more practical and realistic than others.”

“While investment in newbuild LNG-fuelled ships is robust, we need to see the same for bunker vessels, supply and liquefaction infrastructure. As the LNG pathway continues to mature and the use of liquefied biomethane and eventually e-methane increases, the delivery of the fuel to vessels must be assured and the investment gap closed.”

Keller added: “There are approximately 60,000 deep sea ships on the water and, today, we’re looking at around 600 LNG capable ships afloat with a further 600 on order. There are another 1,000 LNG cargo carriers and bunker vessels of varying sizes.”

“While that’s a small percentage of the global fleet, as the clock ticks towards shipping’s emissions reduction targets, the LNG pathway is maturing far faster than other alternative fuels.”

According to DNV there are currently 54 methanol vessels and 2 ammonia vessels on the water.

There are aspects of LNG usage that are fully mature – safety for one. LNG is easy to transport, poses minimal, if any, risk to marine environments, has a low flammability range and is non-toxic. Effective regulations, standards and guidelines for safe operations are widespread, and LNG has been shipped around the world for almost 60 years without any major incidents at sea or in ports.

Keller continued: “When compared to traditional fuels, LNG is more of a teenager with all the growing pains, challenges and victories associated with adolescence.”

“But it is maturing all the time as the market continues to grow, new build orders continue to rise, and the LNG pathway with biomethane and eventually e-methane produced from renewable hydrogen, gains acceptance globally.”

“Shipping stakeholders are investing in LNG because it provides a low risk, incremental pathway for decarbonisation, starting now.  The other alternative fuels are basically toddlers by comparison.  And when it comes to safety, some are mere newborns!”

Another critical need in the maturing process during a period of increased regulation of carbon emissions is the adoption of standardised chain of custody models on a worldwide basis. 

Chain of custody models are becoming increasingly important to maritime decarbonisation as they provide mechanisms to verify that the fuels used are low carbon. 

Such verification creates investor confidence in new fuel supply chains and accelerates the transition to low-carbon fuels, enabling early adoption in conditions of limited supply. 

“They will create a market for green fuels by connecting buyers to fuel producers away from bunker ports enabling faster scaling and providing flexibility to shipping companies at lower cost,” SEA-LNG added.

 

Photo credit: SEA-LNG
Published: 6 December, 2024

Continue Reading
Advertisement
  • EMF banner 400x330 slogan
  • Consort advertisement v2
  • Aderco advert 400x330 1
  • v4Helmsman Gif Banner 01
  • RE 05 Lighthouse GIF
  • SBF2

OUR INDUSTRY PARTNERS

  • Singfar advertisement final
  • SEAOIL 3+5 GIF
  • HL 2022 adv v1
  • Triton Bunkering advertisement v2
  • 102Meth Logo GIF copy


  • Auramarine 01
  • Synergy Asia Bunkering logo MT
  • PSP Marine logo
  • Mokara Final
  • Energe Logo
  • intrasea
  • E Marine logo
  • pro liquid
  • CNC Logo Rev Manifold Times
  • Innospec logo v6
  • Advert Shipping Manifold resized1
  • 400x330 v2 copy
  • Headway Manifold
  • VPS 2021 advertisement

Trending