Speculators Creates Waves In The Asian Bulk Carrier Market
Despite the global economic recovery that is keeping shipping demand high in Asia, charter rates for large bulk carriers have been fluctuating wildly, driven by investors trading contracts for future carrier charter rates, or freight futures.
Price movements in the futures are also causing spot prices for shipping to move erratically.
Charter rates for carriers have been on a roller coaster ride since April. Rates for benchmark capesize vessels with a capacity of about 180,000 tons on key routes averaged $7,050 a day on April 5. They nearly tripled to $20,810 on May 14 then fell sharply to $10,583 on May 30.
LNG Preferred As Transport Fuel Face Barrier
Switching to liquefied natural gas (LNG) is the preferred solution for shipping companies to adopt in order to meet the International Maritime Organization’s (IMO) stringent new international emissions standards for marine bunker fuels, according to the findings of a survey by Deloitte.
However, a lack of refuelling and bunkering infrastructure has been identified as the key barrier to the large scale adoption of LNG as a transport fuel.
The survey of over 80 senior energy industry leaders from across the Asia Pacific region was conducted at the second annual Deloitte Energy Trading Summit in Singapore recently.
Vitol Behind Vlcc To Light-Load At Enterprise Texas City Dock
Vitol has chartered the tanker FPMC C MELODY to load at least 1.1 million barrels of crude oil at Enterprise Products’ Texas City dock on the Houston Ship Channel, according to market sources, the first time crude was loaded onto a VLCC there.
Enterprise leases the Texas City docks from the Port of Texas City as part of its Seaway system. The dock is a single pier that extends over 1,000 feet and has a draft of 45 feet, the company has said.
An Enterprise executive said earlier this month a second VLCC would arrive in the third week of June with a target of loading 1.2 million-1.3 million barrels once the company struck a deal with a trading company. VLCCs typically hold about 2 million barrels.
S Korean Demand For Heavy Naphtha Keeps Premiums Near 2018 High
South Korea’s appetite for heavy full-range naphtha as an alternative feedstock to condensates, supported by firm demand from petrochemical firms SK Energy and Hanwha Total, has kept premiums near this year’s highs, traders said.
SK Energy on Tuesday bought some 50,000 tonnes of the fuel at premiums around $17 to $18 a tonne to Japan quotes on a cost-and-freight (C&F) range, traders not related to the company said.
Although the latest premium that SK Energy paid was below last week’s $19.25, it was still higher compared with the start of the year when premiums on heavy full-range naphtha were at $10 or below.
SK Energy, like many other buyers, do not typically comment on its deals.
SK Energy’s purchase came a day after Hanwha Total had locked in slightly less than 150,000 tonnes of the same grade at almost similar premiums.
Cargill Aims To Cut Ship Emissions 15pc By 2020
Cargill Inc aims to cut carbon emissions from its international shipping unit by as much as 15 percent by 2020, to meet UN regulations to reduce pollution and demands from some of its food manufacturer customers for more environmentally-friendly operations.
The global commodities trader, which was scheduled to announce the emissions goal last week that the reduction of CO2 per cargo-ton-mile was targeted at its time-chartered fleet. But overall, Cargill plans to cut total greenhouse gas emissions on an absolute basis across all company operations by 10 percent by 2025.
Middle East Bunkers Provide Safe Port In IMO 2020 Storm
A new global sulphur cap at the start of 2020 will force most vessel owners to switch from burning fuel oil to more expensive, cleaner alternatives. But as the deadline approaches, few are ready for the shift.
The decision by the International Maritime Organisation (IMO) in October 2016 to bring down the global sulphur cap from 3.5 per cent to 0.5 percent omitted instructions, or an outline of responsibilities, leaving a stand-off between shippers and refiners to act. Intermediaries have been caught out by three-years of inaction.
Port Of Oakland Box Volume Dips 2.9pc
THE US port of Oakland in California handled 204,765 TEU in May, representing a decrease of 2.9 per cent compared with the same month last year.
The decrease in May follows a 3.3 percent year-on-year increase in container throughput in April, which was largely attributed to handling a record 75,369 TEU of loaded imports, reported American Shipper.
Loaded import volumes were steady at 82,465 TEU in May, but loaded exports sank 8.3 per cent to 72,045 TEU compared with the same month the previous year, according to data from the port authority.
Throughput of empty containers rose by 0.6 per cent to 50,255 TEU, while an 11.8 percent increase in outbound empties was offset in large part by a 17.2 percent decline in inbound empties.