Singapore could be losing some market share in the bunkering sector to regional players in 2020 due to the surplus availability of compliant bunker fuels in surrounding regions such as China, says the Senior Research Analyst of global commodities consultancy Wood Mackenzie.
“Singapore, for example, could potentially lose some of its market share for bunker fuels to China as shippers look for alternative locations with a surplus of compliant fuels,” Iain Mowat said reportedly.
“China, with ample MGO supply, is well positioned to attract shippers.”
His comments accompany a report which suggests bunker fuel costs of the global shipping sector to increase by $24 billion in 2020 when the 0.5% sulphur cap for marine fuel takes effect.
A ‘base case’ used by Wood Mackenzie, which uses the current total global shipping fuel bill of roughly $100 billion, indicates costs to increase by $24 billion in 2020.
The rise will be caused by an expected switch from traditional high sulphur bunkers to lower sulphur but more expensive marine fuels such as marine gasoil (MGO), ultra low sulphur fuel oil, and similar low sulphur varieties.
“Switching to MGO is a more costly solution, and in full compliance, would probably see freight rates increase, perhaps by around $1 a barrel,” said Mowat.
Wood Mackenzie, meanwhile, believes just 2% of the global fleet will be fitted with scrubbers by 2020 due to limited financing options, scrubber manufacturing capacity, and dry-dock space.
Hence, the refinery sector will need to increase production of 2020 compliant 0.5% sulphur fuels for the shipping sector, which could cause a shift in primary locations for bunkering operations due to fuel availability, by the deadline.
Published: 12 April, 2018
The eTug built by Master Boat Builders will operate at Port of San Diego’s Tenth Avenue Marine Terminal from mid-2023, says Crowley Maritime Corporation.
Niestern Sander aims to give the vessel a second life through its unique LNG conversion plan to reduce emissions and noise while maintaining speed and power.
Individuals may be fined not exceeding RM 100,000 or face imprisonment term of not more than two years, or both, under Merchant Shipping Ordinance 1952.
Tanker arrested at 14.5 eastern nautical miles of Tanjung Penawar at about 7.15pm on 17 August after Captain failed to produce permission documents.
‘We believe the RTT for bunker surveyors is an effective and good model for Singapore, as the largest International bunkering hub and also a maritime hub, to adopt,’ says IBIA.
Bunkering operation was for Älvtank’s product tanker Ramelia and was conducted at the port of Brunsbüttel at the river Elbe under the LNG supply agreement.
Top three positive movers in 2021 were Hong Lam Fuels Pte Ltd (+14); Sirius Marine Pte Ltd (+12); and TFG Marine (+11); according to the latest data from the Maritime and Port Authority of Singapore.
Webinar will offer delegates insights on the prevention of operational issues when using VLSFOs, along with an update on biofuels and bunker fuel quality trends for 2021 and its forecast for the current year.
Heating VLSFOs to prevent cold flow issues causes issues related to distillate ageing, and there is a gentle balance to be maintained when handling the product.
Research into n-paraffin distribution of VLSFOs has shown that they not only differ from MGO, but significantly differ from each other as well, states bulletin.
Bunker Holding and Dan-Bunkering have decided not to appeal the city court ruling in the case where the companies were on trial for breaching EU sanctions against Syria, states USTC.
Poll shows market participants think Singapore’s future as a bunkering hub in the near term will be impacted most by growth in alternative bunker fuels and intensifying competition from other ports in Asia.
