Marine fuels
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Latest marine fuels news
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Tight MGO supply causes shift to diesel in Durban
Tight MGO supply causes shift to diesel in Durban
Sao Paulo, 16 December (Argus) — Tight supply of marine gasoil (MGO) at the South African port of Durban has driven prices higher and forced some bunker fuel buyers to opt for road diesel instead. Only one bunker fuel supplier at the port has had any prompt MGO availability in recent weeks, according to traders. This is reflected in the price of MGO dob Durban rising to a range of $1,250-1,300/t in November and December from around $1,000/t at the end of October. For comparison, Argus- assessed MGO values dob Cape Town averaged just $966.50/t between 9-13 December. The tight MGP supply at Durban is being mirrored at the South African port of Richards Bay, lending further support to prices, according to one trader. Road diesel is being offered as an alternative as it can be compatible with ship engines. It has sulphur content of 0.005pc, while MGO has up to 0.1pc. The two fuels go through similar processing. Some independent local suppliers can supply road diesel to Durban and Richards Bay by truck, market participants said. Durban is a major bunkering location in South Africa, with demand mainly coming from dry bulk carriers and container vessels. Bunker fuel demand at the port has been supported this year by vessels going via the Cape of Good Hope on the east-west route to avoid chronic traffic disruption in the Red Sea. The tight supply comes despite MGO imports into Durban, including expected arrivals, almost doubling to 64,000t this year, according to Vortexa data. It is not the first time that MGO availability has dried up at Durban. Supply tightened in 2019 when BP and Shell's 180,000 b/d Sapref refinery in Durban shut for maintenance . The State-owned Central Energy Fund (CEF) struck a deal earlier this year to acquire Sapref from BP and Shell. The South African government plans to repair the refinery and expand its capacity to at least 600,000 b/d . By Natália Coelho and Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Bimco develops FuelEU clause for charter parties
Bimco develops FuelEU clause for charter parties
Sao Paulo, 26 November (Argus) — Danish shipping association Bimco has developed a contractual clause to support time charter parties ahead of FuelEU Maritime regulations that come into force at the beginning of 2025. The clause designates the shipowner to be the party responsible for FuelEU Maritime. Bimco said the clause is intended to be the standard applicable for most scenarios and commercial relationships. Among the recommendations, the clause states it is mandatory for a shipowner to present the vessel's compliance balance for the previous two years and in the current year. The FuelEU maritime regulation will start in 2025 and will require that ships traveling in, out of, and within EU territorial waters gradually reduce their greenhouse gas (GHG) intensity on a lifecycle basis. It will start with a 2pc reduction in 2025, 6pc in 2030, and will be 80pc by 2050, all compared with 2020 levels. The regulation applies to all commercial ships above 5,000 gross tonnes (GT) carrying passengers or cargo. "The clause we have adopted today is the result of a collaborative process between owners, charterers, Protection and Indemnity (P&I), legal experts, and other stakeholders," said Bimco's documentary committee chairman Nicholas Fell. Bimco has also already adopted a clause for emission trading allowances under the EU emissions trading system (ETS) for ship management agreements, voyage charter parties, and contracts of affreightment. By Gabriel Tassi Lara and Natália Coelho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Bill would fund US zero-emission vessel projects
Bill would fund US zero-emission vessel projects
New York, 25 November (Argus) — A bill introduced during the US Congress lame-duck session would establish a yearly reserve to help fund zero-emission vessels and related projects. The Zero-Emission Vessel Innovation Act would provide the US Maritime Administration $1bn/yr from 2025 to 2034 to provide grants and low-interest loans for projects related to zero-emission ships, vessels that use alternative marine fuels as well as infrastructure for alternative marine fuels, including bunkering and storage. The bill was introduced in the US House last week by representative Nanette Barragan (D-California), whose district includes the ports of Los Angeles and Long Beach. "This will help the US meet its climate goals while addressing environmental justice concerns in our port communities, including the Port of Los Angeles in my district," Barragan said. "By investing in the research, development, and deployment of green-shipping technologies, Congress can promote a cleaner maritime sector that aligns with the nation's broader climate goals." The legislation would also support workforce training for zero-emission fuels and for research, development and deployment of alternative fuels. The funds from could not be used on projects to build automated ships, according to the bill. The legislation faces long odds of becoming law before the next Congress is sworn in on 3 January, with Republicans keeping control of the House and regaining control of the White House and Senate. Barragan's office did not immediately respond to an inquiry on the prospects of the bill's passage into law. By Luis Gronda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Star Bulk expects smooth 2025 FuelEU compliance
Star Bulk expects smooth 2025 FuelEU compliance
New York, 25 November (Argus) — Greek ship owner Star Bulk said it expects to meet the 2025 FuelEU regulation without issue. Starting on 1 January 2025, the FuelEU regulation will require that vessel fleets travelling in EU territorial waters cap their lifecycle greenhouse gases (GHG) at 89.34 grams of CO2-equivalent per megajoule through 2029. The company plans to meet this regulation by burning B30 biofuel blends on some of its vessels. This will GHG credits for its remaining vessels that trade in and out of EU territorial waters. Star Bulk does not expect to have difficulty sourcing the B30, but warned that sourcing it could become a challenge from 2027 onward. The International Maritime Organization (IMO) should update its GHG emissions regulation for international shipping to include lifecycle emissions from the current emissions from combustion around mid-2027. The organization will require that vessels globally reduce their lifecycle GHG by at least 20pc by 2030 and by at least 70pc by 2040, compared with a 2008 baseline, and reach net-zero by 2050. This will require additional quantities of biofuel. Unlike the FuelEU regulation which applies to vessel fleets or pools travelling in EU waters, the IMO regulation will apply to individual vessels travelling in international waters. Star Bulk burned 832,371 of marine fuel in 2023, down 4pc compared with 2022. Of this quantity, 708,406t was high-sulphur fuel oil (HSFO), 36,598t very low-sulphur fuel oil (VLSFO) and 87,367t marine gasoil. About 95pc of Star Bulk's vessel fleet is outfitted with marine exhaust scrubbers. The scrubbers allow its vessels to burn HSFO in international waters. Vessels that do not have scrubbers are required by the IMO to burn marine fuel with up to 0.5pc sulphur content maximum, such as VLSFO in international waters. Star Bulk's vessels emitted 2.6mn t of CO2 in 2023, down 4pc from 2022. The company is aiming to reduce its fleet's carbon intensity ratio by 12pc by 2026, from 2019 baseline year, consistent with the IMO's carbon intensity indicator targets. In 2023, Star Bulk achieved 4.32pc reduction relative to 2019. The reduction was largely due to improved vessel performance monitoring, hull cleaning, and optimization of weather and routing, the company said. As of the end of September, Star Bulk owned 155 vessels, chartered 10 vessels and had five newbuild vessels on order to be delivered in 2025 and 2026. In April, the company finalized its merger with Eagle Bulk Shipping . By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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Related events
Argus Sustainable Marine Fuels Conference
Argus Sustainable Marine Fuels Conference
Argus Biofuels Europe Conference & Exhibition
Argus Biofuels Europe Conference & Exhibition
