Conflict pushes oil tanker futures higher
Oil tanker futures prices in the April-June period rose by around 20pc on major global routes as Russia's invasion of Ukraine increased the likelihood of sanctions limiting available tonnage supply and altering oil trade flows.
Second quarter forward freight agreements (FFA) on the key Mideast Gulf to Asia-Pacific very large crude carrier (VLCC) route traded as high as Worldscale (WS) 46, up by 23pc from yesterday levels, according to a shipbroker. Gains in the route's spot market were similar, with rates increasing by 22pc to WS39 as shipowners capitalized on uncertainty generated by the conflict to pass rising bunkers costs along to charterers.
FFA rates on the US Gulf coast-Europe Aframax route climbed by 19pc to WS120.
The clean tanker FFA market also saw increases.
Prices for the second-quarter FFA contract for the Mideast Gulf-Asia long range (LR1) clean tanker route firmed by 10pc, according to a shipbroker, while Argus spot market rates on the route were flat at WS100.
As part of its response to Russia's invasion of Ukraine, the US placed restrictions on debt and equity financing for Russian state-owned shipowner Sovcomflot, which operates a fleet of 108 oil tankers.
The conflict had the opposite effect on dry bulk futures, which fell today, partially because of a number of conflict-related failed dry bulker bookings.
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Plaza Marine alleges Ankora used company secrets
Plaza Marine alleges Ankora used company secrets
New York, 6 September (Argus) — New Jersey-based marine fuel supplier Plaza Marine is suing another supplier, Ankora Fuels, alleging that two former Plaza Marine employees used company trade secrets to benefit a rival company and to compete in the same market. Plaza Marine alleges that the two ex-employees, John and Zachary Barbarise, used its trade secrets, confidential information, customer, and supplier relationships to conduct business that is virtually identical to Plaza Marine, according to the suit filed last month in US District Court for the District of New Jersey. John Barbarise was vice president of sales and trading at Plaza Marine until May 2023 and Zachary Barbarise was an operations manager until July 2024. Both individuals are listed as defendants in the suit in addition to Ankora Fuels. According to the lawsuit, John and Zachary's positions at Plaza Marine gave them access to proprietary information about Plaza Marine's business including contracts with its customers, supplier lists and long-term planning like price strategies for its customers. Plaza Marine alleges that John and Zachary used this information to attempt to "clone" Plaza Marine including chartering a vessel that is a long-term vendor of the company and creating a pricing methodology that is like Plaza Marine. This has created confusion in the marine fuel market, according to Plaza Marine. "By creating a competing company engaged in virtually the same activities as Plaza Marine, it is inevitable that John and Zachary will necessarily use and disclose Plaza Marine's trade secrets for their own personal gain and to create an unfair competitive advantage for Ankora," the company said in the suit. According to the lawsuit, prior to resigning from Plaza Marine, Zachary allegedly contacted John on multiple occasions and accessed files related to Plaza Marine's customers, including once after an internal meeting that discussed confidential information related to its customers and suppliers. Zachary also allegedly created Google document files on a personal device and copied and pasted Plaza Marine's trade secrets into that file prior to departing from the company. Plaza Marine alleges that Zachary was passing along this confidential information to John for use at Ankora. Ankora said the allegations are "completely baseless" and that John and Zachary have never taken any information from Plaza Marine. The company said that Zachary has never worked for Ankora and the Google sheets Plaza Marine allegedly found in Zachary's computer were files "for a fantasy football draft and an ultimate fighting championship contest." "The simple truth is Plaza Marine does not want to face competition from a new player in its space. Plaza Marine wants to continue to mistreat customers and other business partners by blocking Ankora Fuels' entry into the market. That's why Plaza Marine has filed this baseless lawsuit. Plain and simple. We are confident that our customers will see the same, and that they will realize – if they haven't already – that Plaza Marine is not a good partner for their businesses," Ankora said. By Luis Gronda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
East-west marine biodiesel spread near six-month low
East-west marine biodiesel spread near six-month low
London, 6 September (Argus) — The east-west marine biodiesel spread narrowed amid firm demand for the B24 blend in Singapore and lacklustre spot marine biodiesel demand in northwest Europe in recent sessions. The east-west marine biodiesel spread — the premium held by B30 used cooking oil methyl ester (Ucome) dob ARA to B24 Ucome dob Singapore — was marked at $47.50/t on 5 September, its narrowest since 19 March. The spread narrowed amid a noted increase in demand from Asian-based shipowners who embark on voyages to Europe ahead of the implementation of FuelEU Maritime regulations in Europe next year — according to market participants. The latter had also reported an increase in B24 demand in Singapore from containerships seeking scope 3 emissions rights that can then be passed on to cargo owners. Scope 3 emissions rights can be obtained on a mass-balance system, allowing shipowners flexibility with regards to the port at which a blend can be bunkered. Argus assessed B24 dob Singapore prices at an average of $720.70/t on 1 July–5 September this year, compared with $757.70/t on 8 February–28 June following the launch of the B30 Ucome dob ARA price on 8 February. Consequently, the east-west marine biodiesel spread was marked at an average of $95.34/t on 1 July–5 September, compared with $74.57/t on 8 February–28 June. A wider east-west spread would incentivise shipowners to opt for the B24 blend in Singapore rather than ARA, when operationally viable, to meet the voluntary scope 3 demand from their customers. Rising demand in the Singapore bunkering hub was further supplemented by higher sales of marine biodiesel blends at the port. According to official data released by the Maritime and Port Authority of Singapore, sales of marine biodiesel blends in the second quarter of the year were marked at about 161,400t — higher by 34,500t from the previous quarter. This was also higher by 52,600t from the second quarter of last year. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Canada’s west coast crude exports up ten-fold on TMX
Canada’s west coast crude exports up ten-fold on TMX
Calgary, 6 September (Argus) — Crude exports from Canada's west coast rose sharply in June as shippers were eager to take advantage of enhanced access to Pacific Rim markets, according to Trans Mountain Corporation (TMC). The 590,000 b/d Trans Mountain Expansion (TMX) pipeline nearly tripled the capacity of the original 300,000 b/d system connecting oil-rich Alberta to Burnaby, British Columbia, with new volumes reaching the Westridge Marine Terminal (WMT) midway through May. Throughputs made a step change in June, the first full month of service, highlighting the pent-up demand among shippers who had waited years for the expansion to be built. Volumes on the Trans Mountain Mainline averaged 704,000 b/d in June, up from 412,000 b/d in May and 300,000 b/d in April, TMC said in its quarterly update. Of those flows, more than half went to the WMT for export in June at 361,000 b/d, ten times the 36,000 b/d sent to the terminal in April. The WMT handled 76,000 b/d of volume in May. Levels at the WMT have held steady in July and August above 350,000 b/d, according to more recent data from Kpler. Most of the volume has gone to China and the US west coast, but cargoes have also been aimed at new markets like Brunei this week . On a quarterly basis, the Mainline handled 471,000 b/d from April-June, up from 349,000 b/d from a year earlier. The WMT handled 157,000 b/d in the second quarter, up from 39,000 b/d across the same period. The Trans Mountain system also has a terminal at the Canada-US border near Sumas, Washington, that diverts crude to refineries in Washington state via the company's 111 kilometre (69 mile) Puget Sound Pipeline. Movements on Puget Sound rose to 246,000 b/d in June, up from 241,000 b/d in May and 199,000 b/d in April. Across the quarter, Puget Sound moved 229,000 b/d, up from 233,000 b/d in the same quarter 2023. Carrying costs for the highly-leveraged C$34bn ($25bn) TMX project weighed on the company's earnings despite an increase in toll-related revenues. Trans Mountain ended the second quarter with C$26.2bn of total debt, up from C$20.1bn a year earlier. Trans Mountain posted a loss of C$48mn in the second quarter, down from a C$172mn profit during the same quarter of 2023. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s Astomos adds LPG-fuelled VLGC to fleet
Japan’s Astomos adds LPG-fuelled VLGC to fleet
Tokyo, 6 September (Argus) — Japanese LPG importer Astomos Energy has commissioned a very large gas carrier (VLGC) with a dual-fuel LPG engine, adding to its existing fleet of 26. Astomos on 4 September commissioned the 86,953m³ Liverty Pathfinder , which was built by shipbuilder Kawasaki Heavy Industries at its Sakaide shipyard in southwest Japan's Kagawa prefecture and is co-owned by shipping firm NYK. The VLGC is the fourth co-owned vessel with NYK, adding to Gas Capricorn in 2003, Gas Garnet and Gas Amethyst in 2024. The VLGC can use LPG as a bunker fuel from a cargo tank. It is possible to reduce more than 95pc of sulphur oxide and more than 20pc of carbon dioxide emissions when the vessel uses LPG as a marine fuel compared with conventional fuel oil, Astomos said. Japan currently imports 10mn t/yr of LPG to cover 12mn t/yr of domestic demand, according to the Japan LP Gas Association. By Reina Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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