USGC clean tanker rates hit multi-year highs
Rates in the Americas clean tankers market for vessels leaving the US Gulf Coast in early December are up to multi-year highs after US Gulf Coast-Caribbean and USGC-East Coast Mexico routes were assessed at levels last seen in 2015. On Tuesday, sources in both US refined product and shipping markets quoted as saying this was mainly because of robust USGC gasoline exports, which is borne out in data from the US Energy Information Administration. Stronger clean tanker costs are evident when viewing a number of routes in the Western Hemisphere. S&P Global Platts assessed freight on the USGC-East Coast Mexico voyage at lump sum $500,000 on December 5.
Oil tanker owners find solace in shale as opec readies cuts
America’s shale boom could be about to spare the world’s oil tanker owners from a typical OPEC ravaging. The producer group and allies decided on December 7 to restrict output from the start of next year by about 1.2 million barrels a day, adding to deeper cuts two years earlier. Under normal circumstances, that would be a dire turn of events for owners who see cargoes cut almost overnight. But shipping analysts are predicting that, this time, the rise of US shale may well shield shippers.
Largest lng bunker tanker starts operations
The world’s largest LNG bunkering vessel owned by Babcock Schulte Energy has started operations in Northwest Europe under charter to the Blue LNG joint venture.
The 7,500 cu m Kairos was handed over to Blue LNG in the port of Klaipeda on December 11. Blue LNG is owned 90 percent by Hamburg based leading LNG supplier Nauticor and the Lithuanian energy infrastructure provider KN.
French giant to hike Asia-East Africa cargo rates
French shipping giant CMA CGM will increase rates US$300 per TEU on all cargoes from Asia to east Africa: GRR from Asia to East Africa on January 1. Called a general rate increase, it will apply to cargo from Asia including China, South Korea, Taiwan, Southeast Asia and Bangladesh to Kenya, Tanzania and Mozambique, the company said.
FSL Trust eyes $21m from vessel sales to fund newbuildings
FSL Trust is aiming to raise up to $21.3m from the sale of its existing ageing vessels to help pay for two new LR2 tankers recently ordered at a Cosco shipyard in China.
Last week, Singapore-listed FSL Trust signed a letter of intent with Cosco Shipping Heavy Industry (Yangzhou) Co for two LR2 product tankers at a total price of $97.6m. FSL Trust said the intention to sell off its ageing vessels is not expected to require unit holders’ approval as disposals are part of fleet management in its ordinary course of business.
Major ports see 5pc rise in traffic volumes
A spurt in coal traffic ramped up cargo volumes at major ports during April-November this fiscal. Thermal or steam coal shipments in the period were up 20.92 percent. Coking coal, too, recorded a firm growth of 15.44 percent. Overall cargo traffic at major ports rose 4.83 percent in this period. In terms of overall cargo shipments, Kamarajar (Ennore) port was the biggest gainer, logging sharp rise of 20.15 percent. Rise in coal traffic is likely due to a spike in electricity demand.
Singapore’s 2019 bunker fuel outlook seen positive
The Port of Singapore is set for another year of growth in bunker fuel sales in 2019 as it enhances infrastructure and services ahead of its mass flow meter mandate for distillates and tightening environmental rules in international shipping, industry sources quoted as saying, last week.
Singapore, the world’s largest bunkering port, saw its marine fuel sales rise 4.2 percent year on year to a record 50.6 million mt in 2017, according to data from the Maritime and Port Authority of Singapore in January.
Clean LR2S switch to sturdy dirty aframax market
A strong dirty tanker market has encouraged owners of clean Long Range 2 vessels to lock in high freight rates for crude and fuel oil stems, sources quoted as saying. Up to 20 LR2s — which can carry around 80,000 mt of product — were said to be operating in the dirty product market. While there is no expense involved in an LR2 going dirty, it costs $500,000 cost plus associated delays to clean out its tanks after taking dirty products and it then needs to transport at least three Gasoil stems to be considered a true clean products tanker again.
India’s major ports witness jump in cargo traffic
Indian top ports had handled 439.96 MT cargo during the corresponding eight-month period of the last fiscal. The major ports in India have recorded a growth of 4.83 percent and together handled 461.21 MT of cargo during the period April to November, 2018 as against 439.96 MT handled during the corresponding period of previous year, Ministry of Shipping said in a statement, last week.
UK Continent-West Africa clean tanker freight rate hits 3-year high
Freight rates to carry a 60,000 mt clean product cargo from the UK Continent to West Africa on a Long-Range tanker vessel strengthened to a three-year high of w170 Friday as demand for clean cargoes, mostly gasoline, drove rates up amid a very tight positioning list, meaning low tonnage. Since hitting an all time-low of w55 on October 4, 2016, rates increased steadily, reaching w170 on Friday, close to its all-time high of w175 of July 21, 2015, S&P Global Platts data shows.
LNG bunkering becoming a global phenomenon
With just about a year left before the enforcement of the IMO 2020 global fuel sulphur cap, the shipping community is now seeing a global phenomenon of LNG bunkering services and infrastructure taking shape. The use of clean fuel LNG is seen as a viable option to meet the 2020 global 0.5 percent sulphur cap.