Tag: bunker prices

More than 40 marine fuel suppliers from around the world have gathered at this year’s Posidonia during a critical juncture for the US$300billion bunkering market, due to the double whammy of the geopolitical crisis and the uncertainty surrounding the regulatory framework pertaining to the decarbonisation of the shipping industry.

S&P Global Platts and SEA-LNG announced a new collaboration to increase visibility in fuel bunker pricing and improve decision making around the viability of using LNG to power fleets.

Reuters reports that China has approved a long-awaited tax waiver on exports of cleaner ship fuel, helping refiners to boost output. Yet, Beijing may initially limit shipments with the aim to focus on growing its coastal marine fuel market.

Two companies filled lawsuits in federal courts in Texas reporting that ships they operated in 2018 were damaged by contaminated bunker fuel sold by a Valero Energy Co subsidiary Valero Marketing and Supply Co, as Reuters reports.

Maersk Tankers uses its proprietary methodology Bunker Adjustment to distribute payments to pool partners according to the bunker consumption of their ships compared to the pool average. Lloyd's Register reviewed the methodology, confirming its conformity to recognised industry quality standards. The methodology began in August 2015.

IMO's initial strategy on GHG reduction from ships stipulates that the industry should assess the impacts on states prior to adoption of mitigation measures. Introducing such measures, such as carbon prices applied to bunker fuels in the range of 10 to 50 USD/ton of CO2, might increase maritime transport costs by 0.4% - 16%, according to a new report by the World Bank.

Ocean freight rates for cargoes moving under contracts on major East-West routes decreased by 7% in the fourth quarter of 2018, which is mostly driven by moderate fall in the Asia-Europe rates, according to Drewry. The latest reduction in average East-West contract rates is the largest quarterly fall since the end of 2016.

As per a previous announcement in late September, Geneva-based Mediterranean Shipping Company is introducing new bunker charges as of 1 January 2019 in line with 2020 sulphur cap. After considerable analysis of operating costs and related market factors, the company has now established a new price mechanism – the BRC (Bunker Recovery Charge) – which will be transparent to respective trades.

Global oil and gas development spend needs to increase by around 20% to meet future demand growth and ensure companies sustain production next decade, said Wood Mackenzie. The consultant forecasts that development spend will increase 5% this year, after a 2% rise on 2017.

European Shippers’ Council (ESC) announced it disapproves the mechanism of surcharges that shipping liners launch to cover the higher rate of lower sulphur fuel, calling for a dialogue with container liners, like Maersk, MSC and CMA CGM, to find the best mechanism to share the costs.