MABUX Digest: Top Events On Global Bunker Market: Week 09
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO (Gasoil) in the main world hubs) turned into steep downward trend in the period of Feb.24-28: the impact of the coronavirus on the bunker and shipping industry is continuing to increase in scope, and the ripple effects are continuing to show up.
380 HSFO 360.82 → 344.29 USD/MT (minus 16.53 USD)
VLSFO 530.00 → 476.00 USD/MT (minus 54.00 USD)
MGO 590.75 → 552.21 USD/MT (minus 38.54USD)
• BIMCO has announced it is co-sponsoring a proposal originally drafted by Japan to regulate the carbon intensity of existing ships. Under the proposals, existing vessels will have to comply with an Energy Efficiency Existing Ship Index (EEXI) limit. The proposal has been submitted to the intersessional working group on Green House Gas reductions, which will meet ahead of the Marine Environment Protection Committee (MEPC) in March.
• The number of LNG bunkering operations carried out in Spanish ports in 2019 more than tripled to 195, compared to 60 in 2018. The growth in terms of fuel volumes has been even greater. Collectively, last year’s 195 bunkering operations accounted for 81,704 cubic metres (cbm) of LNG, whereas the 60 deliveries in 2018 resulted in a total of 4,504 cbm being supply.
• The merger was announced between KPI Bridge Oil and Glencore subsidiary, OceanConnect Marine. The new operation, to be branded KPI OceanConnect, will have a 170-strong team operating across 15 locations globally.
• A draft proposal has been issued to Beijing from China Shipowners’ Association (CSOA) requesting a temporary 12-months reprieve from IMO 2020 sulphur content restrictions following the financial and logistical challenges faced from the coronavirus outbreak. If the suspension is granted, it is unclear whether this would apply to non-Chinese entities.
• NGOs and Indigenous groups cautiously acknowledged progress by the International Maritime Organization (IMO) and its Member States in agreeing on a draft regulation on heavy fuel oil (HFO) use and carriage in the Arctic, but denounced the inclusion of loopholes in the text that mean the ban will not come into effect until 2029, leaving the Arctic exposed to the growing threat of HFO spills for close to another decade.
• Danish shipping group A.P. Moller-Maersk plans to raise the proportion of high sulphur fuel oil it consumes from 10% to 25% by the year-end. The world’s largest container shipping firm consumed a total of around 11.80 million tonnes of shipping fuel last year.
• Foreship has reported an increase in enquires about fitting exhaust gas cleaning systems. It indicated that 3,756 vessels have exhaust gas scrubbers either installed or on order. As per report, by the end of 2020, up to 15%t of ocean-going freight capacity will employ the machinery, with the number now expected to rise to 20 per cent by 2025.
• BIMCO, ICS, Intercargo and Intertanko have launched an online survey with the aim to get a greater understanding of the quality of the new fuel oils and possible safety implications of the IMO 2020 sulphur regulation, and encourage shipowners to participate. Participants are encouraged to provide short answers to 13 questions about their experiences with fuel oil quality since the change to 0.50% sulphur compliant fuel oils.
• Japan-based shipping giant NYK has presented its concept for using ammonia as a marine fuel. As per NYK, ammonia does not emit carbon dioxide (CO2) when it is heated and would thus be expected to contribute to the effort to address global warming. In addition, if CO2-free hydrogen is used, zero emissions are said to be achieved.
• The IMO’s Sub-Committee on Pollution Prevention and Response (PPR) produced the decision to recommend a ban on ships’ burning heavy fuel oil in the Arctic as well as important agreements on guidelines for fuel oil sampling and scrubbers. The draft amendments will be submitted to the 76th meeting of the Marine Environment Protection Committee (MEPC 76), which will take place on 19-23 October.
• Standard Club has reported that its correspondents in France, Portugal, Spain and Gibraltar have indicated that restrictions on the use of open-loop scrubbers are now in place in their countries. In addition to these four European states, the list of countries with restrictions on the discharge of wash-water from open-loop scrubbers now includes Singapore, Malaysia, China, Pakistan, the United Arab Emirates, Bahrain, Egypt, Estonia, Latvia, Lithuania, Germany, Belgium, Norway, Ireland, Bermuda and Panama. Restrictions are also in place in the US states of Connecticut, California and Hawaii.
• The Singapore-based shipping company Unix Line pleaded guilty in a US Federal Court to violating the Act to Prevent Pollution from Ships and will be sentenced on 20 March. The Company acknowledged that crew members onboard the 16,408 GT tanker, Zao Galaxy, failed to record the discharge of oily bilge water without the use of required pollution-prevention equipment during the vessel’s voyage from the Philippines to Richmond, California.
• Oil product inventories at Fujairah – the UAE bunkering hub – climbed 13% week on week to reach 25.98 million barrels – surpassing the previous record of 25.75 million barrels registered on 29 April last year.
Source: Marine Bunker Exchange (MABUX)