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Tag Archives: shipping

New waves in freight, part I: USGC-Brazil route emerges as barometer for tanker market

Shifting oil product trade flows have implications for the way the market assigns value to tanker routes. In a two-part series, S&P Global Platts shipping editors look at the impact of new trends in fuel demand and supply on both sides of the Atlantic. Trans-Atlantic product tradeflows are losing market share to Latin American-bound voyages amid rising Middle East refining capacity and diesel exports to Europe. Brazil is the second-largest petroleum products import market in the Americas,...

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After IMO 2020, decarbonization in spotlight for shipping sector: Fuel for Thought

Shipping companies in Asia and around the globe are steaming ahead with efforts to minimize their carbon footprint as the urgency to decarbonize intensifies after a fairly smooth transition to the International Maritime Organization’s low-sulfur mandate for marine fuels. The IMO in April 2018 laid out its strategy to reduce the shipping industry’s total greenhouse gas emissions in 2050 by at least 50% from 2008 levels, and to reduce CO2 emissions per transport work by at least 40%...

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Dirty tanker markets face reality check after boom busts: Fuel for Thought

The tanker markets experienced an extremely volatile second quarter as the coronavirus pandemic threw all oil-related markets off-kilter, with rates on some routes swiveling from record-highs to record-lows in just a matter of months. But with the oil market gradually rebalancing and the summer lull kicking in, freight rates are likely to stay largely steady and soft in the coming months. And according to S&P Global Platts Analytics, freight rates on the dirty tankers’ market will likely...

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Don’t write an obituary for shipping’s dirtiest fuel

High sulfur fuel oil, once the cheap staple diet of the shipping industry, has been usurped by an abundance of low-cost, premium quality bunker fuel. That’s led to seafarers freezing orders for equipment to remove the sulfur from HSFO and maximizing compliant fuels. But don’t write off shipping’s dirtiest fuel as shippers play a waiting game over the oil price recovery. The COVID-19 driven collapse in oil demand has led to the spread between HSFO and very low sulfur fuel narrowing to less...

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Low bunker fuel prices bittersweet for shipowners as global trade volumes fall

The shipping industry, skating on razor-thin margins, is drawing solace from cheaper bunker fuel prices caused by the coronavirus pandemic. But the jury is still out on whether this will offset weaker shipping demand, which has infected key routes globally after decimating those in Asia. As the coronavirus pandemic takes the chair out from under global oil demand, marine fuel price surges from the IMO 2020 rules are a distant memory for the maritime industry – even though they only took...

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Shipping and bunkers: coronavirus trade shock eclipses IMO 2020 upheaval

The shipping and bunker sectors spent years in preparation for the historic changes imposed by the International Maritime Organization’s global low sulfur mandate, IMO 2020. But no sooner did the new rules kick in than market participants had to urgently confront a collapse in crude oil prices and obstructed tradeflows, as the world was gripped by the deadly effects of the coronavirus pandemic, and lockdowns and social distancing became the new norm. “IMO 2020 has got lost somewhere....

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Container shipping teaching OPEC lesson in market management: Fuel for Thought

If OPEC looks out to sea it will find a kindred spirit. Both the oil industry and global trade have been ransacked by a collapse in global demand, with oil producers and the shipping sector employing strategies to restore balance. While an alliance of ocean carriers has been keeping freight rates stable, there is a difficult journey ahead before they are seen as flag bearers for market management. Carriers moved fast and decisively to reduce overcapacity and prevent a dramatic drop in...

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Commodity Tracker: 6 charts to watch this week

In this week’s pick of energy and commodity charts to watch, super tankers are in high demand to store oil while prices remain at historic lows. Plus, regional gas prices converge around all-time lows, European steel and aluminum demand plummets, and Asian gasoline markets expect little relief from oversupply. 1. Global crude oil glut creates demand for long-term floating storage     What’s happening? Some super tankers are being booked to store crude for up to three...

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Insight Conversation: Cem Saral, CEO, Cockett Marine Oil

Cem Saral, CEO of bunker reseller Cockett Marine Oil, talked with Claudia Carpenter about how shipping has adapted to the International Marine Organization (IMO) 0.5% limit on sulfur in marine fuel effective January 2020, and what comes next. Cockett Marine Oil, owned by Swiss trader Vitol and South African freight company Grindrod, resold an estimated 5.5 million tons of marine fuel in 2019, versus 6.5 million tons in 2018. Saral was named Cockett CEO in September 2016, after working for...

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Commodity Tracker: 7 charts to watch this week

The coronavirus pandemic continues to play havoc with commodity markets, but while many products have been pummeled by the weak demand outlook and the eruption of an oil price war, others are proving more resilient. S&P Global Platts news and pricing editors sort the bullish from the bearish in raw materials and energy markets. 1. VLCC rates spike on Saudi crude deluge, floating storage demand   What’s happening? Asian VLCCs were hit hard by the coronavirus outbreak, with the...

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