Bunker Fuel

MSI: IMO midterm measures to add 80% premium to bunker costs by 2035

IMO’s penalties would be equivalent to an 82% premium on top of the fleet bunker costs by 2035 – almost USD 100 billion for the 30,000 ships included in Maritime Strategies International’s database.

Published

2 weeks ago

May 8, 2025

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MSI: IMO midterm measures to add 80% premium to bunker costs by 2035

Maritime and energy research provider Maritime Strategies International (MSI) on Wednesday (7 May) said analysis performed by MSI using data from its new platform has given an early indication of the impact that the IMO’s recently agreed Net Zero Framework will have on the bunker market.

By extending the annual fuel consumption estimates calculated in SEASCAPE platform for 2024 through to 2035, and applying MSI’s forecasts for bunker prices, MSI projected the future fuel costs for all conventionally-fuelled ships included in the platform, which is just over 30,000 ships, alongside the projected IMO penalties.

“This provides some indication of the scale: by this approach, the IMO’s penalties would be equivalent to an 82% premium on top of the fleet bunker costs by 2035 – almost USD 100 billion for the ships included,” it said.

From another perspective, this also highlighted the opportunity for the shipping bunker market – an annual pot directed towards drop-in biofuels and low carbon alternatives that could rise to USD 100 billion per year within the next decade.

MSI SEASCAPE is designed to complement MSI products which offer a forward view of the market by providing a complete retrospective, 12-month view on the global fleet. Hourly data on vessel activity provides vessel speed, direction, emissions, fuel consumption, port time and anchorage durations.

MSI uses machine learning to identify changes in voyage patterns and ship clusters, developing an algorithm to measure vessel tracks, speed and port stays to generate emissions data where AIS satellite tracks were not available. Each month, MSI’s algorithm generates data for over two million ‘dark periods’ where AIS signals are absent.

Users can extract data by ship, by fleet or sections of the global fleet, filtering by vessel type, characteristics or IMO number. The product is being made available at flexible subscription levels allowing users to start with the data they require most and add additional sectors as their needs evolve.

“MSI has invested two years in SEASCAPE’s development, driven by demand from customers for improved modelling of fleet behaviour at a time when fleet inefficiencies and diversions are impacting earnings and values far in excess of historical norms,” said Will Fray, Director, MSI.

“The platform can also be used for due diligence prior to vessel acquisition/lending or charter, to track fleet or vessel behaviour and compare against cohorts and competitors.”

Photo credit: Maritime Strategies International
Published: 8 May, 2025

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Milestone

Singapore: Equatorial conducts its first bio-blended LSMGO bunker fuel delivery of 2025

Several key challenges including product sourcing, sustainability certification, product handling, and logistics & planning had to be addressed to execute the complex operation, notes COO of Equatorial.

Published

41 minutes ago

May 20, 2025

Admin

Singapore: Equatorial conducts its first bio-blended LSMGO bunker fuel delivery of 2025

Singapore bunker supplier Equatorial Marine Fuel Management Services Pte Ltd (Equatorial) in early May carried out its first bio-blended B24 Low Sulphur Marine Gas Oil (LSMGO) bunker fuel delivery of 2025.

The milestone saw Equatorial’s Singapore-flagged 7,999 dwt IMO Type II bunker tanker EM Nikita delivering Used Cooking Oil Methyl Ester (UCOME) based LSMGO, blended to B24 spec, to an Orient Overseas Container Line (OOCL) operated vessel with its electronic bunker delivery note (eBDN).

“This milestone represents not just Equatorial’s first B24 LSMGO delivery, but also a significant step forward for sustainable marine fuel adoption in Singapore,” Choong Sheen Mao, Chief Operating Officer at Equatorial, told Manifold Times.

“It showcases our capability to evolve alongside the market and our commitment to providing certified, traceable, and high-quality biofuels to our customers.”

According to So Kah Meng, Sustainable Energy Manager at Equatorial, several key challenges including product sourcing, sustainability certification, product handling, and logistics & planning had to be addressed to execute the complex operation.

“Bio-blended LSMGO is significantly rarer in the market than bio-blended VLSFO due to limited production capacity, stricter blending requirements, and limited downstream demand. Equatorial secured supply through advanced procurement planning and leveraging trusted ISCC-certified upstream partners,” he explained.

“ISCC EU certification was essential to ensure traceability and regulatory compliance. Equatorial worked closely with its supply chain to ensure full documentation and sustainability verification ahead of the delivery schedule.

“Unlike bio-VLSFO, bio-blended LSMGO’s lower viscosity and pour point demanded additional considerations in tank pre-treatment and temperature control during transfer. Equatorial implemented specialised cleaning protocols and temperature monitoring to maintain fuel integrity.

“Coordination between our UCOME supplier, storage facility, barge planning, and receiving vessel was critical. Equatorial’s in-house technical and commercial teams worked closely with the Maritime and Port Authority of Singapore (MPA) and classification societies to ensure regulatory compliance and operational safety.”

Moving forward, Patrick Ng, Assistant Marketing Manager at Equatorial, believed the milestone operation was made possible by the favourable commercial maritime landscape under the supervision of MPA.

“Singapore’s strong regulatory framework, established bunkering infrastructure, and growing customer interest in low-carbon fuels have made it possible for projects like this to be commercially viable,” he stated.

“Equatorial is proud to contribute to Singapore’s decarbonisation leadership.”

Photo credit: Equatorial Marine Fuel Management Services
Published: 20 May 2025

LNG Bunkering

Baleària arranges LNG bunkering operations on same day at Port of Barcelona

Occasion marked the first time three bunkering operations were carried out on three different ships on the same day at the same port in Spain.

Published

22 hours ago

May 19, 2025

Admin

Baleària arranges three LNG bunkering operations on same day in Barcelona

Spanish shipping company Baleària on Thursday (15 May) said it broke an all-time record for the supply of liquefied natural gas (LNG) with the bunkering of three of its vessels in the port of Barcelona.

The occasion marked the first time three bunkering operations were carried out on three different ships on the same day at the same port in Spain.

The company said the three vessels were fuelled with a total of 2,320 MWh of LNG by eight tankers.

Fast ferry Margarita Salas was fuelled by three tankers simultaneously. Ferry Martín i Soler was fuelled by two tankers and ferry Bahama Mama was bunkered by another three tankers also.

“Our commitment to LNG grew by 184% in 2024. Combined with electric propulsion and other eco-efficiency measures, we have managed to reduce our carbon footprint by almost 10% per passenger,” it said.

Photo credit: Baleària
Published: 19 May, 2025

Bunker Fuel

Vitol launches VLSO and MGO bunker fuel deliveries by barge in West Africa

Latest expansion means that Vitol Bunkers now serves customers in locations across Asia, Australia, Africa, Europe, Middle East and North America.

Published

22 hours ago

May 19, 2025

Admin

Vitol to offer new FuelEU compliant co-processed VLSFO bunker fuel

Marine fuel supplier Vitol Bunkers on Friday (16 May) said it has started supplying bunkers by barge to the West Africa (WAF) region.

The company said it has started with initial deliveries of Very Low Sulphur Fuel (VLSFO) and Marine Gasoil (MGO) and plans to expand its offering to the full spectrum of marine fuels.

“Bunkering by barge offers flexibility of location, taking place wherever there is a need, including Dakar and offshore Lomé,” it said in a statement.

The latest expansion means that Vitol Bunkers now serves customers in locations across Asia, Australia, Africa, Europe, the Middle East and North America.

Ammar Hussaini, Vitol Bunkers, said: “Supplying bunkers by barge to the WAF market allows us to support our customers flexibly in the location and with the fuels that they need.”

Photo credit: Vitol
Published: 19 May, 2025