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Asian lpg premiums surge on supply tightness, houston shipping delays

Asian LPG premiums have ballooned amid supply tightness in the region for March and April deliveries, market sources said Wednesday. The spread for H1 April CFR Japan physical propane to the FOB Saudi Arabia CP April propane swap has averaged $18/mt to date this month, S&P Global Platts data showed.

This is sharply higher than the whole month average spread for March CFR Japan physical propane to the FOB Saudi Arabia CP March propane swap of $12.83/mt, according to Platts data. The H1 April CFR Japan physical propane premium was $20/mt above the propane FOB Saudi Arabia CP April swap Tuesday, Platts data showed.

Mediterranean-Japan LR1 tanker rates hit 22-week low

Freight rates to carry a 55,000 mt clean petroleum cargo from the Mediterranean Sea to Japan on an LR1 tanker have sunk to a 22-week low of $29.09/mt, on an extended period of long delays through the Turkish Straits. LR1 rates have fallen 30 percent since the start of the year, S&P Global Platts data showed. Long delays through the Turkish Straits for vessels longer than 200m have led to a sharp decrease in rates for LR tankers. Delays stand at 14 days northbound and 12 days southbound, down from 20 days at the end of January.

IMO 2020: Global shipping, oil refiners brace for sea change

The international marine fleet underpins the system of world trade and consumes around one in every 20 barrels of oil. Shipping industry emissions are significant, with the world’s merchant fleet emitting more CO2 each year than Germany. From the start of 2020, International Maritime Organization (IMO) rules come into force that limit the sulfur content of marine fuels to 0.5percent from the current limit of 3.5percent.

Volatility in pacific ocean shipping freight rates likely to continue in 2019

The cheapest way to move goods into the US from overseas will get more expensive as fuel prices rise and ocean carriers aim to boost their earnings. The Ports of Los Angeles and Long Beach, despite all their congestion issues, are still the fastest and cheapest ways to bring freight from Asia into the US. But the trans-Pacific market has been anything but pacific, said Mark Szakonyi, executive editor of JOC.com, creating an “erratic trans-Pacific shipping market” that was marked by spot shipping rates rising as high as US$2,300 per FEU, reduced capacity from the ocean carriers, severe port congestion and lower levels of service.

 

Novorossiisk bunker fuel value catches up on Istanbul

The premium of bunker fuel at Istanbul over Novorossiisk has narrowed in recent days, sinking to its lowest level in eight months amid difficult operating conditions at the Russian Black Sea port.

S&P Global Plats assessed 380 CST fuel oil at Novorossiisk at $423/mt delivered Monday, $9/mt below the delivered price at Istanbul — the narrowest the gap has been since July 17 last year. The differential between the ports had also reached the $9/mt mark on February 26. The pressure on the spread between the ports has come from prices at Novorossiisk gaining on those at Istanbul, rather than weakness at the Turkish port. Values at Istanbul found support from rising CIF Med cargoes’ high sulfur fuel oil regional benchmark, which had risen in recent days.

Fujairah’s bunker premium drops over 30pc

Fujairah bunker premiums in February fell more than 30 percent month on month amid ample supply, according to S&P Global Platts data and industry sources. Spot ex-wharf 380 CST bunker fuel premiums over Mean of Platts Arab Gulf 180 CST assessments averaged $3/mt in February, coming off from an average of $6/mt in January, Platts data showed. Spot delivered 380 CST bunker fuel premiums over MOPAG 180 CST averaged $11/mt in February, softening from an average of $17/mt in January, the data showed.

Saudi Arabia’s gasoil exports surge

Saudi Arabia’s gasoil exports in 2018 surged to an all-time high of around 40.78 million mt, or up 37percent from 2017, making it the largest gasoil exporter East of Suez last year, the latest figures from the Joint Organizations Data Initiative showed.

In 2017, gasoil exports from the Kingdom reached 29.826 million mt, rising 5percent from 2016, JODI data showed. Gasoil imports into the country more than doubled to 8.969 million mt in 2018, from 4.404 million mt in 2017. Saudi Arabia is expected to raise its total domestic refinery capacity in 2019 to around 3.3 million b/d, with the commercial start-up of it 400,000 b/d Jazan refinery.

Sulfur, ballast water norms to boost tanker freight rates

Global VLCC freight rates are expected to be well supported this year and in the next as a large number of them will go for maintenance, and also install a ballast water treatment system at a time when there is also more demand to move crude across continents, a senior industry analyst said.

In the run-up to the implementation of new norms on sulfur emissions from marine fuels, refineries are ramping up and reconfiguring their capacities to cater to the likely strong demand for LSFO and Marine Gas Oil, Ralph Leszczynski, director for research in Genoa-based Banchero Costa, said in an interview on the sidelines of the MARE Shipping Forum in Singapore earlier this week. Banchero is a global shipping brokerage and consultancy.

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