Marine Fuels 360: Future box sector marine fuel mix to depend on each liners’ needs, notes ONE
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by Admin
Demand for future alternative marine fuels within the container shipping sector will be dependent on individual liner’s needs and values, shared the Deputy General Manager, Fuel, at Ocean Network Express (ONE).
Richard Ho made the above observation while speaking amongst panellists in the Bunker Buyer’s Dialogue session at Marine Fuels 360 on Tuesday (28 November) when asked about future fuel demand in the container sector.
“This is a rather complex question. The reason why I say that is because in the first place when you look at different container liners, each are in different stages of decarbonisation as well,” he stated.
“Decarbonisation is not only about slow steaming. Using e-BDN (electronic bunker delivery note) is also a decarbonisation effort because you reduce manpower and people movement. Decarbonisation should be a way of life for every one of us and not just shipping.”
According to Mr Ho, the demand for bunker fuel changes in accordance with the procurement complexity.
“We used to be looking at marine fuel procurement in near term of between three to six months and adapt accordingly,” he shared.
“However, the moment we go into a new marine fuel it is no longer looking at the near term or even the one-year horizon; we are now looking into the multi-year horizon to make sure we can secure a certain level of order for alternative fuels whether it’s ammonia or methanol.
“Growth of the global economy and evolving environmental regulations will bring about an increase in demand for different bunker fuels. And with respect to every single shipping liner’s organisation, demand within may differ depending on their own decarbonisation effort.”
Moving forward, Mr Ho noted bunker fuel consumption may even increase in the future – under certain conditions.
“When I look into the last five years, there has a trend of fuel reduction for vessels via fuel efficiency, the introduction of various technologies and operational approaches,” he explained.
“This may even come to a turning point whereby future marine fuel consumption could increase instead. This could be due to various reasons such as an increase in fleet size, vessel speed due to demand from the market, and more.”
Related: ONE completes e-BDN adoption trial with Shell in Port of Singapore
Photo credit: Informa
Published: 5 December 2023
