Maersk is calling on the International Maritime Organization (IMO) to have a carbon dioxide tax for the maritime industry ready by 2025; starting at about $50 a tonne and gradually increasing it to $150 a tonne in later years, Bloomberg reports.
The company said the tax will bridge the price gap between traditional bunker fuels that vessels currently consume and greener alternatives that are much more expensive.
Fuel costs would effectively almost double if the measure were imposed today because of how carbon dioxide emissions are counted.
According to Maersk, the $150 tax will equate to a $450 per metric tonne (pmt) hike in the cost of Very Low Sulphur Fuel Oil (VLSFO).
VLSFO costs about $500 to $525 pmt depending on where in the world it’s bought, according to data compiled by Bloomberg.
“It’s not trivial to move to green fuels from a cost perspective,” said Soren Skou, CEO of A.P. Moller Maersk. “We need to somehow level the playing field, and that’s the purpose of a market-based measure.”
The issue is set to be discussed at a UN meeting beginning next week.
Photo credit: Maersk
Published: 4 June, 2021
VLSFO and HSFO availability tight in Singapore; Zhoushan bunkering suspended by typhoon; steady availability in Hong Kong.
“Strong demand combined with bottlenecks, lack of capacity and equipment shortage in the global supply chains drove freight rates up significantly,” says CEO.
Tanker strengthens Monjasa’s marine fuel operations across the Middle East which currently consist of four tankers ranging between 4,000 and 10,000-dwt.
Fuel comparison sheet provides insight into the costs for LNG as a marine fuel compared to existing bunker fuels to help companies account for future budgeting.
Customers will be able to start using this information to generate actionable insights on speed and bunker planning immediately.
Titagarh Wagons launched the vessel ahead of schedule at Kolkata in the middle of May 2018.
Discussions around the need to develop methanol bunkering operations are taking place at numerous ports ahead of estimated demand of above 7M mtpa by 2030, says Chris Chatterton of Methanol Institute.
‘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.
