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Freight rates on VLCCs and Suezmazes move up

Freight rates have risen over the last quarter on VLCCs and Suezmaxes. However, there have been supply-side shocks which threaten to reduce tonne-mile demand and though more vessels have been sold for scrap, excess tonnage is still an issue for the dirty tanker market.

VLCC rates have risen steadily over the last three months and the WAF to China VLCC route, basis 260,000 mt, was assessed at $11.44/mt April 3 compared with $13.85/mt June 27, a rise of $2.41/mt over the quarter, according to S&P Global Platts data.

Market fundamentals have not changed and this rise has more to do with the fact that bunker prices have risen while the value of IFO 380 in Singapore jumped $90.50/mt, according Platts data.

Piraeus bunker fuel-buying flurry narrows price discount to Istanbul

The bunker fuel market at Piraeus, Greece, has been busy this week amid a surge in requests from container and cruise vessels, local sources said last week, leaving 380 CST prices at a narrower discount to Istanbul, its main rival, which has been quieter.Sources said 380 CST bunker prices at the Greek port were indicated around $460/mt during the morning, $4/mt below Tuesday’s assessed price, and buyers were snapping up parcels.

Demand in Piraeus usually soars in the summer months due to a ramp-up in cruise season arrivals. The higher demand at Piraeus comes at a time when the barge schedule is consistently tight — a knock-on effect of a barge sinking at the port last September, leading to tighter regulations and safety checks.

Singapore 500 ppm sulfur gasoil cash differential sinks to record low

The FOB Singapore 500 ppm sulfur gasoil cash differential sank to a record low based on the new 10 ppm sulfur gasoil pricing basis at a discount of $1.54/b to the Mean of Platts Singapore Gasoil assessment at the close of Asian trade Tuesday.

It is the lowest the 500 ppm sulfur grade has been since the sulfur content in Platts benchmark gasoil was changed to 10 ppm from 500 ppm on January 1, 2018.

The sharp decline was attributed by traders to softer demand for 500 ppm sulfur grade in the region amid the ongoing fishing ban in China, as well as the monsoon season in Southeast Asia and India.

KDB bank, NH investment underwrite $30 million debt on Teekay’s new vessels

South Korea’s state-run lender KDB Bank and NH Investment & Securities Co. Ltd. have underwritten a $15 million subordinated debt each to partially finance the $330 million purchase of three new tankers by Teekay, a leading operator of crude oil and LNG tankers.

In addition to the $30 million subordinated tranche, Teekay borrowed $260 million in senior direct loans from KDB, Export-Import Bank of Korea and other global banks to buy the shuttle tankers from South Korea’s Samsung Heavy Industries Co. Ltd, according to sources with knowledge of the matter on July 2.

For its part, Teekay stumped up $40 million for the three newbuilds it ordered in 2015. They were delivered between 2017 and early 2018.

 

Using ‘genuine zero CO2? bunker fuels key to IMO emission goals in shipping

The ultimate goal of zero greenhouse gas emissions can only be delivered with “genuine zero CO2 fuels” as the greater use of LNG and biofuels is likely to present only an interim solution to meeting the International Maritime Organization’s emissions reduction target, the International Chamber of Shipping said.

In April, a key committee of the IMO agreed to an initial strategy of cutting the shipping industry’s total GHG emissions by at least 50percent from 2008 levels by 2050. In addition the, IMO has also set a goal of improving the sector’s efficiency by at least 40percent by 2030 and by 70percent by 2050.

Bangladesh ship recycling project: second phase begins

The second phase of an International Maritime Organization (IMO) implemented project to enhance safe and environmentally sound ship recycling in Bangladesh has been launched with the first Project Executive Committee meeting in Dhaka, Bangladesh (2 July).

The SENSREC Project Phase II — Capacity Building, funded under a US$1.1 million agreement with Norway, will focus on legal and institutional analysis of ship recycling in the country and will develop a roadmap for the Government of Bangladesh to accede to the 2009 Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention).

Queue at Australian PWCs coal terminals falls on week to 18 vessels

Port Waratah Coal Services’ two terminals at Newcastle port in eastern Australia had 18 ships waiting offshore Sunday, compared with 23 a week ago, the Hunter Valley Coal Chain Coordinator said in its weekly report, Monday. The queue was expected to be fewer than five at end-July, HVCCC said.

A total of 2.4 million mt of coal was shipped out of the PWCS terminals in the week ended July 1, up 576,000 mt from a week earlier. Month-to-date exports totaled 346,000 mt, according to the report.

Coal producers had forecast July arrivals at the terminals at 10.1million mt, and for August at 11.1 million mt, the report showed.

Meanwhile, coal throughput on Newcastle port’s railway last week was 3.66 million mt, HVCCC said.

Around 1.26 million mt of coal was shipped through the NCIG terminal at Newcastle last week, S&P Global Platts data showed.

The Carrington and Kooragang terminals at Port Waratah had combined stocks of 2.04 million mt available for export on Sunday, up by about 81,800mt from the previous week.

Gladstone port had seven ships in queue Monday, and an additional three ships were loading at Queensland port’s RG Tanna coal terminal, Gladstone Ports Corporation said.

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