Bunker Fuel

SIBCON 2024: Oldendorff, Peninsula discuss uptake of traditional bunker fuels, risk management

‘The majority of the orderbook today, in all segments, is not dual fuel mainly due to costs. We cannot run away from that,’ shared the Director of Bunkers at Oldendorff Carriers.

Published

7 months ago

October 17, 2024

Admin

Representatives of bulk shipowner Oldendorff Carriers GmbH & Co. KG. and bunkering firm Peninsula, amongst others, met at the Fuel Oil Markets – Projections and Supply Chain Resilience panel discussion session during the 23rd Singapore International Bunkering Conference and Exhibition (SIBCON 2024).

Topics discussed included the increased uptake of traditional marine fuels and importance of robust risk management.

Jens Maul Jørgensen, Director of Bunkers, Oldendorff Carriers GmbH & Co. KG, noted the dry bulk segment to be welcoming more than a thousand newbuildings within the next three years. Data from shipyards have indicated most of these vessels, especially the bigger ones, having scrubbers onboard.

“The majority of the orderbook today, in all segments, is not dual fuel mainly due to costs. We cannot run away from that; the vessel need fuel to sail,” he explained.

Meanwhile, areas such as the Amsterdam–Rotterdam–Antwerp (ARA) region have seen even more high sulphur fuel oil (HSFO) than LSFO supplied every month, which shows demand for traditional HSFO to be increasing.

New Emission Control Areas (ECAs) such as the Mediterranean Sea ECA taking effect from 1 May 2025 will also mean more consumption of low sulphur bunker products.

Jørgensen, who is responsible for purchase bunker fuels for approximately 750 bulk carriers, next highlighted the importance of managing proper exposure control due to fluctuating oil prices.

“If we don’t hedge, we speculate. We must make sure that the prices are safe as nobody can predict what is going on in six months. Being in a open position will be a big risk, especially in this market, so proper exposure control is the key.”

Kenny Peninsula

Kenny MacLean, Chief Operating Officer, Peninsula agreed with Jørgensen approach towards managing risk.

“It’s the same story, but we’re buying bulk, and so it’s progressively even more important. I think the bunker industry in general has had a bit of a checkered past with companies that haven’t paid too much attention to their risk management,” shared MacLean.

“That’s something that Peninsula is absolutely laser focused on. So obviously, all our purchases are hedged and that’s of critical importance.

“Other areas that are super important is making sure that you’re getting economies of scale out of the purchases as well. But really, it’s that hedging, derivatives, price risk management side that’s of critical importance in our industry in general.”

Concurring with Jørgensen’s observation of high consumption of low sulphur bunker products such as marine gas oil (MGO) within ECAs, MacLean added the similar regions have also been driving the increased use of biofuels.

“What we try to do is have a very diverse customer base, and our supply decisions are pretty much based around aggregating that customer demand by being a bit more customer centric and really getting into our customers and asking, ‘What are the solutions that you’re going to need?’” he said.

“It’s our job as a bunker supplier to aggregate that fuel together and make sure that we can make it available in the right place at the right time, otherwise, you’re going to be left just with a few very large bunkering hubs around the world.

“It’s incumbent upon bunker suppliers like Peninsula to make sure that if it’s in the Mediterranean we’ve got the full range of products available so that when Jens knocks and says, ‘Actually, I’d quite like some biofuel guys’ we are there with the solutions ready and available.”

Photo credit: Manifold Times
Published: 17 October 2024

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Newbuilding

Tsuneishi delivers world’s first methanol dual-fuel Ultramax bulker to NYK

“Green Future” was delivered at Tsuneishi factory on 13 May and will be chartered by NYK Bulk & Projects Carriers, an NYK Group company, from Kambara Kisen.

Published

23 hours ago

May 15, 2025

Admin

Tsuneishi delivers world’s first methanol dual-fuel Ultramax bulker to NYK

Tsuneishi Shipbuilding on Wednesday (14 May) said it has delivered the world’s first methanol dual-fuel Ultramax bulk carrier, Green Future.

The 65,700 dwt vessel was delivered at its factory on 13 May and will be chartered by NYK Bulk & Projects Carriers, an NYK Group company, from Kambara Kisen.

Tsuneishi Shipbuilding said the vessel maintains the high cargo capacity and fuel efficiency characteristic of the TESS66 Aeroline design series, while enabling more sustainable operations through the use of methanol as a fuel.

The methanol fuel tank has been positioned to maximise safety and facilitate smooth cargo handling while maintaining loading efficiency. It is also equipped with a fuel-efficient main engine and Tsuneishi’s proprietary Aeroline technology to reduce wind resistance, delivering superior fuel performance.

Mr Okumura Sachio, Representative Director, President & Executive Officer of Tsuneishi Shipbuilding, said: “This delivery marks just the beginning. We will continue constructing methanol dual-fuelled vessels at our overseas facilities and remain steadfast in our pursuit of technological innovation to contribute to a more sustainable maritime industry and global environment.”

NYK said the vessel is the first bulk carrier in the NYK Group to be equipped with a dual-fuel engine that uses methanol and fuel oil.

Vessel Particulars

LOA: 199.99 m
Breadth: 32.25 m
Depth: 19.15 m
Deadweight: approx. 65,700 metric tonnes
Capacity: approx. 81,500 m3
Draft: 13.8 m

Photo credit: Tsuneishi Shipbuilding
Published: 15 May, 2025

Events

Green Shiptech China Congress to explore alternative bunker fuels and ship technologies

LNG, methanol and ammonia as well as fuel cell integration will be among key issues discussed at the annual conference which will be held on 25 to 26 September in Shanghai.

Published

23 hours ago

May 15, 2025

Admin

Ridge China on Wednesday (14 May) announced it will be hosting the 14th Green Shiptech China Congress (GSCC), an annual conference which will be held on 25 to 26 September in Shanghai.

More than 4,400 experts and decision makers from governments, classification societies, shipowners, shipyards, research institutes, technology/equipment suppliers and consulting companies attended the previous GSCC from 2012 to 2024.

For 2025, over 400 industry experts, corporate decision makers and government officials will be engaged in comprehensive discussions on current issues of IMO, EU, USCG, China MSA’s policies and regulations, designs and standards for new ship models, innovative and sustainable green ship technologies at this annual conference.

Alternative bunker fuels such as LNG, methanol and ammonia as well as fuel cell integration will be part of the important issues discussed at the event.

Speakers will be from

IMO
European Commission
U.S. Coast Guard
China MSA
Financial Institutions
Maritime Research Institutes
Solution & Technology Providers
Shipowners
Shipyards
Classification Societies

Key topics

Policies and Regulations Update and Interpretate by IMO, European Commission, U.S. Coast Guard and China MSA
Retrofitting Vessels to Achieve Decarbonization Goals
Energy Efficiency Continues to Be Key for Decarbonization
Decarbonization Through Digitalization
Digital Technologies As a Key Enabler for Emissions Reduction
Impact of a Hull Coating Upgrade on Hull Efficiency
LNG As Marine Fuel: Pivoting Towards Cleaner Shipping
Methanol As a Marine Fuel
Ammonia’s Credentials As a Green Fuel
Wind Propulsion Technology
Fuel Cell Integration: Upcoming Challenges and Opportunity
Propelling Carbon-neutral Shipping with Green Engines and Alternative Fuels
Next-generation Electric and Hybrid Marine Propulsion Technologies and Components
Latest Developments in Energy Storage Systems

Interested parties may contact:

Mr. Quin Xu
Tel: +86 21 6607 8610 -8003
Mob: +86 13564222811
Email: [email protected]

Note: The English and Chinese version of the event website can be found here and here respectively while the event registration can be found here.

Photo credit: Ridge China
Published: 15 May, 2025

Bunker Fuel

TFG Marine to launch bunker fuel supply operations in Jamaica on 1 June

Firm will commence marine fuel supply operations at Port of Kingston and on north coast of Jamaica, with Scott Petroleum, a local supplier with insight into Caribbean bunker market.

Published

23 hours ago

May 15, 2025

Admin

TFG Marine to launch bunker fuel supply operations in Jamaica from 1 June

Global marine fuel supply and procurement firm TFG Marine on Wednesday (14 May) said it will launch its bunkering service in Jamaica with its local partner, Scott Petroleum.

The marine fuel supply operations will commence at the Port of Kingston as well as on the north coast of Jamaica, from 1 June.

“The operation is being launched in partnership with Scott Petroleum, a trusted local supplier with over two decades of experience and unmatched insight into the Caribbean bunker market,” it said in a social media post.

Very Low Sulphur Fuel Oil (VLSFO), High Sulphur Fuel Oil (HSFO) and Low Sulphur Marine Gas Oil (LSMGO) fuels will be sourced locally from the Petrojam Limited-operated Kingston refinery and will be supplied via the bunker barge operated by Scott Petroleum.

“By combining Scott Petroleum’s local insight with TFG Marine’s global expertise and commitment to innovation, this new venture aims to set a new benchmark for marine fuel supply in the region, delivering reliable, efficient and transparent bunkering services to vessels calling at this key Caribbean port,” the company said.

Kenneth Dam, Head of Bunkering at TFG Marine, said: “We’re very happy to be setting up in Jamaica,” It’s a strategic location with strong demand and teaming up with Scott Petroleum means that we can hit the ground running with an existing reliable, well-run operation.

“We’re looking forward to bringing TFG Marine’s global expertise and fuel supply innovation to the Caribbean, and to raising the standard of service for marine fuel customers across the region.”

Gary Scott, CEO at Scott Petroleum, said: “We are excited about our partnership with TFG Marine. The new venture will form a strong force to expand the bunker service being offered in Jamaica and will be able to capture other opportunities that exist in the region”

Note: For inquiries regarding TFG Marine’s new vessel supply services in the region in collaboration with Scott Petroleum, contact [email protected] or [email protected].

Photo credit: TFG Marine
Published: 15 May, 2025