The approaching global 0.50% sulphur cap for marine fuel effective 2020 will likely introduce issues for the global shipping sector, says the executive committee member of energy and commodities trading and distribution firm Vitol.
“It’s going to be more and more difficult to burn that fuel oil with more economies going to natural gas for power,” Chris Bake told Reuters.
“[Lower sulphur] marine gasoil has to build ahead of 2020. At the same time fuel oil will have to build because there is lack of demand but it’s difficult to figure out when that inflection point is,” he said.
A chance by the shipping industry to install scrubbers, which allow vessels to continue using cheaper fuel oil as a bunker fuel, has been missed, he says.
Photo credit: Vitol
Published: 26 February, 2018
Chris Hudson of Freight Investor Services outlines the looming regulatory changes, how they will be implemented and the solutions the shipping sector could adopt.
9% of low sulphur fuel samples in the Americas analysed between 1 December to 13 January found to be off spec for issues, including engine-damaging sediment, says FOBAS.
Update fails to answer number of enforcement policy questions raised by IMO 2020, says Winston & Strawn lawyer.
In general, the Port of Singapore’s performance stood resilient throughout 2020 with bunker sales amounting to 49.8 million tonnes at a 5% year-on-year increase.
New fuel regulations will cost the shipping industry about $60 billion per year, it estimates.
Decision ‘not likely science-based, as there is no evidence that would clearly support it,’ says CSA 2020 Chairman.
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.
