German shipping line Hapag-Lloyd has "in more than once instance" had fuels delivered that do not comply with the new sulfur regulations. "You can't use non-compliant fuel. Period," managing director tells ShippingWatch.
In the past three months, the price on new low-sulfur fuels has risen markedly, which could lead to container lines implementing higher fuel surcharges if the trend continues, assesses analyst firm Sea-Intelligence.
J. Lauritzen is challenged by excessive sulfur in new fuels, Global Risk Management opens new offices and reshuffles management, while a shipping CEO thinks the industry is unprepared for climate-related challenges. These are some of this week's most important stories on ShippingWatch.
J. Lauritzen has now entered about 50 deals in over 20 different ports about new low-sulfur fuels. But some of the new fuels have turned out to have too high sulfur contents, bunker chief says. Supply in Singapore and Panama is also "all wrong" at the moment.
Since Goodfuels signed up shipping company Norden as a biofuels customer, the pace has quickened for the company. Large oceangoing carriers are next in line, says founder and CEO in an interview with ShippingWatch.
Contract prices on low sulfur fuel will become a commodity on the US New York Mercantile Exchange from mid-December, report several media. The price difference between heavy fuel and low sulfur fuel is a major subject of in the industry.
According to firm Seaintelligence, end customers will only be affected by a "manageable" additional expense if container shipping companies are able to send the bill for the upcoming sulfur requirements further on to shippers.
Marshall Islands, Bahamas, Bimco and Intertanko feel misunderstood and are now trying to argue their case after facing tough criticism of the proposal to introduce an "experience-building phase" in connection with the 2020 sulfur regulations. However, the proposal has already divided maritime nations.
Both Maersk and Torm are against the proposal for an "experience building phase" in connection with the global sulfur cap from 2020. This would create "uncertainty" and could risk "delaying the implementation" of the regulation, says Simon Bergulf, head of regulatory affairs at Maersk.
The 2020 sulfur regulations will be implemented on time, and most of the world's shipowners will comply, says Edmund Hughes, head of air pollution and energy efficiency at the IMO's marine environment division, in an interview in Singapore.
It is far from certain that open-loop scrubbers will be approved in China once the country imposes stricter sulfur regulations from next year. Meanwhile, a large, German shipping company has just invested in open-loop scrubbers, which have faced harsh criticism in the industry.
One large container carrier and one big owner of feeder tonnage have announced low-sulfur bunker as their primary choice for complying with the 2020 sulfur cap. However, scrubbers may also be considered.
From Oct. 1, China will require that vessels sailing on the crucial trade route along the Yangtze river sail on fuel with maximum 0.5 percent sulfur. This is three months earlier than expected, reports North P&I in an update to customers.
Brazilian mining giant Vale has chosen scrubbers for its newest generation of bulker behemoths, even though the company is also prepared to sail on LNG. It is possible retrofitting will take place with other sections of Vale's existing fleet, reports TradeWinds.
The Irish tanker shipping company finished the second quarter with a bigger net deficit in a product tanker market struggling with record-low rates. One factor in particular could help the market get back on track in the years to come, says CEO Anthony Gurnee.