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Selected News Headlines 2020/Q1

THIS WEEK’S HEADLINES SELECTED BY INTERCARGO (20/01/2020 – 26/01/2020)

Shipowners should prepare for charter party issues from Wuhan coronavirus

As the Wuhan coronavirus crisis in China deepens rapidly shipowners have been warned to be prepared to face issues such as quarantine and closures and resulting charter party issues. (Seatrade Maritime News: click here)

Insurers warn coronavirus crisis could close ports

Several the mainstream protection and indemnity insurers are warning shipowners and their crew to closely monitor the spread of the coronavirus. (Tradewinds: click here)

IMO: Smooth Transition into Sulfur Cap Regulations

The IMO says information from various sources has indicated a relatively smooth transition to the 0.5 percent sulfur cap for bunker fuel. (The Maritime Executive: click here)

Stellar Daisy’s sister ships sent for demo

Two months ahead of the third anniversary since the sinking of the Stellar Daisy with the loss of 22 lives, the ship’s owner, Polaris Shipping from South Korea has decided to condemn to history all of the sister ships of the converted ore carrier. (Splash 247: click here)

High black carbon emissions from VLSFO heaps pressure on IMO

Following on from a landmark study funded by the German Environment Agency that suggests some blends of the new very low sulphur fuel oil (VLSFO) contain higher black carbon emissions than its forebear, high sulphur fuel oil (HSFO), the International Maritime Organization (IMO) is coming under pressure to ban the new fuel in Arctic waters. (Splash 247: click here)

 Bunker fuel price spreads tipped to have peaked, on course to fall below $200

Scrubberless shipowners are breathing easier in the knowledge that 24 days into the global sulphur cap era it appears the industry has already passed the peak in terms of price spread between high and very low sulphur fuel oil (VLSFO). (Splash 247: click here)

Low-sulphur fuel oil prices drop USD 99 per MT in Singapore

Singapore has seen one of the largest drops in the price of Very Low Sulphur Fuel Oil (VLSFO), which peaked on 7 January 2020 at USD 740 per metric tonne (MT) and dropped USD 99 to USD 641 per MT on 22 January. The price has also fallen in other ports around the world. (Hellenic Shipping News: click here)

Dry bulk trade in 2020: continuing sluggish growth?

A further slowing of global dry bulk trade growth momentum unfolded last year. Estimates suggest that in 2019 as a whole growth was weak, below the previous year’s increase. Signs point to a similar outcome – a weak increase – in 2020. (Hellenic Shipping News: click here)

IMO’s marine fuel rules sets shipping industry for a comeback in 2020

The global shipping market is set for a recovery, benefiting from new global rules on marine fuels that came into effect at the beginning of the year after more than a decade of tough market conditions, according to IHS Markit. (Hellenic Shipping News: click here)

Two-tier cape market emerges as scrubbers earn a premium

Meanwhile, the Baltic Dry Index has fallen to its lowest level in just under four years (Tradewinds: click here)

 
24.01.2020
WEEK AGO
WEEKLY CHANGE
WEEKLY CHANGE %
52 Week Range
Baltic Dry Index
557
754
-197.0
-26.1%
557-2,518
BRENT ($/bbl)
64.1
64.9
-0.7
-1.1%
WTI ($/bbl)
57.9
58.5
-0.6
-1.1%
MGO ROTTERDAM ($/mt)
527.0
549.5
-22.5
-4.1%
MGO  FUJAIRAH ($/mt)
713.5
746.0
-32.5
-4.4%
MGO SINGAPORE ($/mt)
642.0
669.0
-27.0
-4.0%
VLSFO ROTTERDAM ($/mt)
510.5
531.5
-21.0
-4.0%
VLSFO FUJAIRAH ($/mt)
626.0
675.5
-49.5
-7.3%
VLSFO SINGAPORE ($/mt)
627.5
655.5
-28.0
-4.3%
IFO 180 ROTTERDAM ($/mt)
342.0
318.0
+24.0
+7.5%
IFO 180 FUJAIRAH ($/mt)
352.0
339.5
+12.5
+3.7%
IFO 180 SINGAPORE  ($/mt)
384.0
379.0
+5.0
+1.3%
ULSFO ROTTERDAM, MAX 0.1% SULPHUR ($/mt)
510.0
527.5
-17.5
-3.3%
LSMGO SINGAPORE, MAX 0.1% SULFUR DISTILLATE ($/mt)
629.0
659.0
-30.0
-4.6%
EUR-USD
1.10
1.11
-0.01
-0.6%
GBP-USD
1.31
1.30
+0.01
+0.4%
USD-JPY
109.28
110.14
-0.86
-0.8%
USD-KRW
1,167.48
1,159.48
+8.00
+0.7%
Sources: KPI Bridge Oil, Bloomberg.com, ShipandBunker.com
13 January 2020 - 19 January 2020

THIS WEEK’S HEADLINES SELECTED BY INTERCARGO (13/01/2020 – 19/01/2020)

The Paris and Tokyo Memoranda on the carriage of non-compliant fuel

The Tokyo and Paris Memoranda of Understanding (MoUs) on port State control (PSC) have been working collaboratively to ensure that vessel owners and operators are aware that under the Authorities belonging to these MoUs, inspections will be undertaken to ensure compliance with the new sulphur limit requirements on marine fuel oil, from 1 January 2020. (Tokyo MOU: click here)

Australia issues regulations for implementation of IMO2020 premised on a policy of strict compliance

One of the many challenges faced by shipowners with the coming into effect from 1st January 2020 of the MARPOL Convention Annex VI global sulphur cap reduction for marine fuel for general shipping from 3.50%wt to 0.50%wt (IMO2020), is the approach that will be taken by Port State Control (PSC) agencies to IMO2020 compliance in different jurisdictions. (Hellenic Shipping News: click here)

VLSFO deliveries surge from Q3 2019: Popularity of VLSFO supports rising premiums

Deliveries of 0.5% sulfur fuel oil and prices for the new product rose at major bunkering hubs at the end of 2019, according to the latest report from the International Energy Agency published Thursday. (Hellenic Shipping News: click here)

Low sulphur fuel found to have higher black carbon emissions than HSFO

Mandated into law for less than three weeks and very low sulphur fuel oil (VLSFO), shipping’s new number one bunkering choice, is already facing calls to be banned, especially in Arctic waters. (Splash 247.com: click here)

Supply of low-sulphur fuels rising fast

Reuters reports that global supplies of marine fuel compliant with the new environmental rules are increasing fast as concerns over quality remain marginal. (Safety4Sea: click here)

VLSFO blends face a prohibition push after black carbon emissions study

Just weeks into the 2020 sulphur cap, VLSFO blends have been shown to have an even worse impact on black carbon emission levels than heavy fuel oil because of their high aromatic content. (Lloyd’s List: click here)

P&I Clubs brace for wave of IMO 2020 claims

Mutual insurers are holding their breath during the early weeks of IMO 2020 regulations, as fuel compliance, scrubber performance and wash water issues present a whole new series of liability risks. (Seatrade Maritime News: click here)

Suez Canal Authority Bans Scrubber Wash Water Discharge

The Suez Canal Authority has advised shipowners that discharging wash water from open-loop scrubbers during transit in the waterway is strictly forbidden. (World Maritime News: click here)

China’s steel demand expected to rise in 2020

China’s demand for steel is expected to register an uptick in 2020, according to a guild report. (Hellenic Shipping News: click here)

Master Fined for Delay in Reporting Main Engine Failure

The master of a ship has been fined for failing to report without delay a main engine breakdown off Queensland, Australia, that affected the safety, operation and seaworthiness of his ship. (The Maritime Executive: click here)

Panamax rates tick up amid down dry bulk market

Panamax rates have picked up in the past couple of days, contrasting the overall dry bulk market’s downward trend. (Tradewinds: click here)

Dry Bulk Market: Looking for a Rebound

Capesize: The market was relatively stable over this past week putting an end to the past months of more extreme declines. Panamax: A fluctuating week in the Panamax market. After a slow start it showed small green shoots of recovery by mid-week only for activity to appear to slow again come the end of the week. Supramax/Ultramax: A lacklustre week again with many areas seeing negative movement. Handysize: Overall a slow week with negative sentiment continuing in both basins. (Hellenic Shipping News: click here)

 

 
17.01.2020
WEEK AGO
WEEKLY CHANGE
WEEKLY CHANGE %
52 Week Range
Baltic Dry Index
754
774
-20.0
-2.6%
595-2,518
BRENT ($/bbl)
64.9
65.0
-0.1
-0.2%
WTI ($/bbl)
58.5
59.0
-0.5
-0.8%
MGO ROTTERDAM ($/mt)
549.5
571.0
-21.5
-3.8%
MGO  FUJAIRAH ($/mt)
746.0
794.0
-48.0
-6.0%
MGO SINGAPORE ($/mt)
669.0
707.0
-38.0
-5.4%
VLSFO ROTTERDAM ($/mt)
531.5
559.5
-28.0
-5.0%
VLSFO FUJAIRAH ($/mt)
675.5
739.5
-64.0
-8.7%
VLSFO SINGAPORE ($/mt)
655.5
703.0
-47.5
-6.8%
IFO 180 ROTTERDAM ($/mt)
318.0
327.5
-9.5
-2.9%
IFO 180 FUJAIRAH ($/mt)
339.5
367.0
-27.5
-7.5%
IFO 180 SINGAPORE  ($/mt)
379.0
399.0
-20.0
-5.0%
ULSFO ROTTERDAM, MAX 0.1% SULPHUR ($/mt)
527.5
548.5
-21.0
-3.8%
LSMGO SINGAPORE, MAX 0.1% SULFUR DISTILLATE ($/mt)
659.0
714.5
-55.5
-7.8%
EUR-USD
1.11
1.11
0.00
-0.3%
GBP-USD
1.30
1.31
0.00
-0.4%
USD-JPY
110.14
109.45
+0.69
+0.6%
USD-KRW
1,159.48
1,161.50
-2.02
-0.2%
Sources: KPI Bridge Oil, Bloomberg.com, ShipandBunker.com
06 January 2020 - 12 January 2020

THIS WEEK’S HEADLINES SELECTED BY INTERCARGO (06/01/2020 – 12/01/2020)

Bunker quality claims in 2020 – issues to consider

In recent years the shipping industry has faced a significant number of bunker quality claims, most notably arising out of the so-called “Houston problem”, where there were numerous complaints that contaminated fuel had caused engine problems, including sludge blocking fuel filters and the sticking and seizure of fuel injection components. In the most serious cases, there were reports of vessel blackouts and groundings. (Hellenic Shipping News: click here)

First IMO 2020 breaches detected in China

The Chinese authorities have caught two vessels in Chinese waters for using non-compliant fuel, the first reported cases of breaches of IMO 2020. (Safety at Sea: click here

Panama Canal Introduces Freshwater Surcharge

Due to changing rainfall patterns and historic low water levels at Gatun Lake, the main source of water for the waterway, the Panama Canal has announced a new freshwater surcharge beginning February 15. (The Maritime Executive: click here)

Rising Prices Show Tighter Supplies of Cleaner Fuel for Global Shipping

The price of very low-sulfur fuel oil has risen in recent months, a sign of increasing worry there is not enough of the fuel to comply with new global shipping laws that took effect this year, market participants said. (gCaptain:  click here)

China’s 2019 iron ore imports rise to second-highest ever

China’s iron ore imports rose 0.47% in 2019 to hover just below their all-time annual peak, fuelled by strong demand at steel mills and a second-half recovery in shipments from big miners after disruptions earlier in the year. (Hellenic Shipping News: click here)

Dry Bulk Market: Capesizes Struggle for Traction

Capesize: Closing out the first full trading week of 2020, the Capesize market is struggling to gain any solid positive upward traction. Panamax: An active week with healthy volumes of fixing, particularly in the Atlantic, with East Coast South America grain demand for end January/beginning February shipment dates supporting the market here. Supramax/Ultramax: A dramatic difference from this time last year, with the Baltic Supramax Index (BSI) closing the first week at 570, whilst in 2019 it was 946. Handysize: First week back for many was not inspiring, with rates in many areas under negative pressure. (Hellenic Shipping News: click here)

 
10.01.2020
WEEK AGO
WEEKLY CHANGE
WEEKLY CHANGE %
52 Week Range
Baltic Dry Index
774
907
-133.0
-14.7%
595-2,518
BRENT ($/bbl)
65.0
68.6
-3.6
-5.3%
WTI ($/bbl)
59.0
63.1
-4.0
-6.4%
MGO ROTTERDAM ($/mt)
571.0
609.5
-38.5
-6.3%
MGO  FUJAIRAH ($/mt)
794.0
804.0
-10.0
-1.2%
MGO SINGAPORE ($/mt)
707.0
732.0
-25.0
-3.4%
VLSFO ROTTERDAM ($/mt)
559.5
593.5
-34.0
-5.7%
VLSFO FUJAIRAH ($/mt)
739.5
777.5
-38.0
-4.9%
VLSFO SINGAPORE ($/mt)
703.0
724.5
-21.5
-3.0%
IFO 180 ROTTERDAM ($/mt)
327.5
323.5
+4.0
+1.2%
IFO 180 FUJAIRAH ($/mt)
367.0
366.0
+1.0
+0.3%
IFO 180 SINGAPORE  ($/mt)
399.0
399.0
0.0
0.0%
ULSFO ROTTERDAM, MAX 0.1% SULPHUR ($/mt)
548.5
582.5
-34.0
-5.8%
LSMGO SINGAPORE, MAX 0.1% SULFUR DISTILLATE ($/mt)
714.5
717.0
-2.5
-0.3%
EUR-USD
1.11
1.12
0.00
-0.4%
GBP-USD
1.31
1.31
0.00
-0.1%
USD-JPY
109.45
108.09
+1.36
+1.3%
USD-KRW
1,161.50
1,166.93
-5.43
-0.5%
Sources: KPI Bridge Oil, Bloomberg.com, ShipandBunker.com
23 December 2019 - 05 January 2020

HEADLINES SELECTED BY INTERCARGO (23/12/2019 – 05/01/2020)

 Update: Crew assaulted as five ships attacked in Singapore Strait

Five vessels were attacked by pirates in the Eastbound lane of the Singapore Strait on 20 and 23 December with the crew on one assaulted, and tied on up on two, adding to a string of incidents in the busy shipping lane. (Seatrade Maritime News: click here)

Tests Raise Alarms Over Fuel Blends Coming for Ocean-Going Vessels

As a global clean-fuel mandate takes effect Jan. 1, testing companies examining newer, low-sulfur marine blends acquired in Antwerp, Belgium; Houston and Singapore have found sediment at levels that could damage the engines of ocean-going vessels. (gCaptain: click here)

IMO 2020: Think twice before finger pointing

With the implementation of International Maritime Organization Low Sulphur Regulation (or IMO 2020), concerns keep on growing amid recently announced bunker adjustment factors by carriers and the apparently far-from-enough low-sulphur output from global oil refiners. (Seatrade Maritime News: click here)

Standard Club warns on new Aussie rules for scrubbers

The Standard Club is warning that strict new rules are in place over the use of scrubbers in Australia on the eve of the enforcement of IMO 2020. (Tradewinds: click here)

Egypt’s Suez Canal Authority announces 5% toll increase for LPG and dry bulk carriers

The Suez Canal Authority (SCA) issued on Saturday the toll prices for the year 2020. (Bunker Ports News: click here)

 IMO 2020 effect on capesize rates ‘remains to be seen

Capesize rates slipped on the first full business day of IMO 2020 but longterm impact on dry bulk shipping’s benchmark figure is still anyone’s guess. (Tradewinds: click here)

Baltic Dry Index tumbles further marking a bleak start to 2020

Benchmark index falls a further 7%, with only a couple of rare fixtures in the period market this week (Tradewinds: click here)

Dry Bulk Market: Capesize Market Starts on the Wrong Foot

Capesize: The New Year started with an erosion on pre-Christmas rates as the higher low sulphur fuel costs due to IMO 2020 affected levels. Panamax: As the new calendar year begun and bunker fuel legislation came into effect, rates remained severely under pressure in most areas. Supramax/Ultramax: Week one of the decade started very negatively with all routes losing ground. This was due to long tonnage lists and a lack of fresh enquiry, coupled with the new era of the IMO 2020 regulations coming into force. Handysize: A slow start to the year with limited fresh activity and tonnage availability piling up, brokers said. (Hellenic Shipping News: click here)

 
03.01.2020
WEEK AGO
WEEKLY CHANGE
WEEKLY CHANGE %
52 Week Range
Baltic Dry Index
907
1,090
-183.0
-16.8%
595-2,518
BRENT ($/bbl)
68.6
68.2
0.4
0.6%
WTI ($/bbl)
63.1
61.7
1.3
2.2%
MGO ROTTERDAM ($/mt)
609.5
603.0
+6.5
+1.1%
MGO  FUJAIRAH ($/mt)
804.0
748.5
+55.5
+7.4%
MGO SINGAPORE ($/mt)
732.0
685.5
+46.5
+6.8%
ULSFO ROTTERDAM, MAX 0.1% SULPHUR ($/mt)
582.5
584.5
-2.0
-0.3%
LSMGO SINGAPORE, MAX 0.1% SULFUR DISTILLATE ($/mt)
717.0
691.5
+25.5
+3.7%
IFO 180 ROTTERDAM ($/mt)
323.5
323.0
+0.5
+0.2%
IFO 180 FUJAIRAH ($/mt)
366.0
328.0
+38.0
+11.6%
IFO 180 SINGAPORE  ($/mt)
399.0
364.5
+34.5
+9.5%
EUR-USD
1.12
1.12
0.00
-0.1%
GBP-USD
1.31
1.31
0.00
0.0%
USD-JPY
108.09
109.44
-1.35
-1.2%
USD-KRW
1,166.93
1,161.29
+5.64
+0.5%
Sources: KPI Bridge Oil, Bloomberg.com, ShipandBunker.com