ShareThis
Come 2015 commences the next phase of the lower permissible sulphur limits, which are to be once again reduced in the emissions control areas (ECAs). As such, shipbroker Gibson noted in its latest weekly report that it is very difficult to gauge how owners will deal with the additional requirements for the 0.1% maximum sulphur content. According to the shipbroker, "owners operating almost exclusively within these zones have been dealing with this issue for quite some time either having to pay the additional costs for low sulphur fuel or seek other measures to reduce their exposure to high bunker prices. Distillate fuel still remains the most viable option, given the lack of any workable alternative, although the high price will continue to rankle with owners, with no real easing in fuel prices apparent. Exhaust gas cleaning systems or scrubbers have been adopted by some owners operating ferries or coastal tonnage within the ECAs, but very few of these systems have been embraced by deep sea fleet owners. Various studies into the use and cost of fitting scrubber technology has provided little comfort for those considering this option and some owners have encountered serious problems with a piece of kit relatively untested for use at sea. The high capital cost of the equipment and installation needs to be weighed against the costs of distillate fuel and perhaps the residual value of your vessel long term given other impending legislation which could require even more investment", Gibson mentioned.
Meanwhile, "alternative fuels such as LNG still appear to be a long way off although the US seems to have already adopted dual-fuel technology through heavy government support in newbuildings for all vessel types (including product tankers) for Jones Act trade – but again coastal trading. Europe appears to have fallen behind the US in terms of LNG bunkering with a lack of any coherent policy on the issue. Many technical issues need to be surmounted for LNG to work effectively on longer voyages.
So the net result of the imposition in the ECAs in 2015 (0.1% sulphur limit) will probably change very little assuming there is an ample supply of gas oil to meet demand. The more significant date will be the adoption of the Global Sulphur Limit scheduled for 2020 which is to a large extent outside the shipping industry’s control. Here the industry will very much be at the mercy of the refineries and their ability to meet the new requirements both in terms of quantity and specification. Development of alternative fuels and improved propulsion systems will take huge strides between now and 2020. The development of more efficient ship designs and Eco technology will not eradicate the need for oil based fuels; it will just increase the demand for cleaner fuels", Gibson concluded in its analysis.
Meanwhile, in the crude tanker markets this week, in the Middle East, "conference' through the week for VLCC rates, and at a level that, although a little under the peaks, still remained in relatively super-charged territory in the low ws 60’s East and very high ws 30’s to the West. By the weeks' end, however, charterers were mopping up the last dregs of the December programme at an easier pace, and unless they jump solidly ahead onto January dates, then a degree of softening is likely over the coming period. Suezmaxes had a busy week of it, but it wasn’t until late on that the balance became finer, and rates remained stuck at around ws 72.5 East, though did push up to ws 45 for West runs, with more upside possible. Aframaxes also saw good activity, and enough to make a significant break-out. Rates jumped to 80,000 by ws 105 to Singapore upon a noticeably tightening list, and could spike further, although probably not for long", the London-based shipbroker said.
In the North Sea, "eventually Aframaxes started to bubble...not boil over, but certainly bubble. Rates end the week at around 80,000 by ws 105 Cross UKC with 100,000 by ws 75/77.5 the range ex Baltic, though Charterers will have to tread carefully from Monday to prevent more icing forming on Owners' cake. Larger sizes weren’t exactly busy, but rate ideas are inherited from the other, busier, zones, and 135,000 to the States pays a theoretically higher ws 67.5 now, and VLCCs to the East still talk at US$6.5 million to South Korea and around US$5.25 million for fuel oil to Singapore", Gibson concluded.
Post to be found at:
http://www.hellenicshippingnews.com/News.aspx?ElementId=28f3181a-73b9-411f-b184-fdcffec2671a&utm_source=newsletter&utm_medium=email&utm_campaign=daily
No comments:
Post a Comment