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IMO's marine fuel rules sets shipping industry for a comeback in…

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BEIJING/LONDON, Feb 12 (Reuters) – Global ship deliveries have been hit as yards in China struggle to get fully back to work as a result of the coronavirus outbreak, with one shipbuilder saying it could not deliver two vessels.

“Considering the fact that fleet supply will likely tighten due to silicone body scrubber amazon retrofitting and potential demolitions, given that demand remains healthy, we may see stronger freight rates this year,” said Dalibor Gogic, principal analyst at IHS Markit.

China’s Jiangsu New Times Shipbuilding, which has an annual production capacity of 5 million deadweight tonnes (DWT), had issued a force majeure notice on two vessels to Bermuda-based cargo operator 2020 Bulkers, a spokesman said.

Charles, which can process up to 215,000 barrels of crude oil every day, exceeded the federal limit during August pollution tests, sometimes by as much as 10% to 20%. Soot at that refinery has escalated since 2017, according to results from stack tests, used to measure fine particle pollution. Valero did not return messages seeking comment.

Clarksons Research said it recorded a significant slowing in the number of ships already in service installing scrubbers, estimating there were under 100 vessels undergoing retrofits versus over 300 at the start of the year.

“Over 70% of vessels currently undergoing scrubber retrofitting are doing so in China. On that front, there are on-going delays at shipyards because workforces are depleted, taking vessels out of action,” Charles Chasty, research analyst with broker Affinity Shipping, said.

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SINGAPORE, Jan 23 (Reuters) – 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.

While retrofits were slow last year and delayed by technical difficulties and a lack of key parts, “scrubber adoption is expected to continue and a second wave of installations is expected this year”, said IHS, adding that it expected more than 3,500 units to be equipped with scrubbers by January 2021.

Companies that have bought scrubbers say, however, that a rebound in oil prices – and a narrower difference in costs between high and low sulphur fuel – will once again make the devices more cost-effective.

“For 2020, the dry freight market is expected to be stable with artificial supply tightness owing to scrubber installations as well as robust iron ore trade growth while political risk remains in the coal trading sector,” said Daejin Lee, principal consultant at IHS Markit.

“China accounts for over 40% of all new buildings. So, beyond the on-going current issues, such as the depletion of the labour force, vessels currently under construction are being delayed. Some of these vessels may even slip into 2021,” Chasty told the Reuters Global Markets Forum.

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Big refineries run by Exxon’s rivals are doing much better at controlling soot. Ironically, many of them are using technology invented and licensed by Exxon, according to disclosures by Exxon and environmental regulators.

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Owing to new regulation implemented by the International Maritime Organization (IMO) to curb sulphur emissions, scrubber retrofits and removals of older fleets with a high compliance cost are expected to lead to fleet tightening, which will help increasing freight rates across sectors and ultimately boost orders, said IHS Markit.

Nov 11 (Reuters) – A Valero refinery outside of New Orleans recently produced lung-damaging soot at rates that exceeded federal limits while outpacing other major U.S.
refineries, according to disclosures by state and federal environmental regulators.

Charles´ peak was 69 pounds per hour, or an equivalent of 302 tons per year, during the August pollution test. With a few exceptions, even larger refineries than St. Charles produce lower rates and volumes of soot pollution, according to test results reviewed by Reuters.

Despite a slowing crude oil market share from Organization of the Petroleum Exporting Countries in 2019, tanker demand growth will be driven by increased crude exports from the United States, Brazil, Guyana and Norway, said Fotios Katsoulas, principal analyst at IHS Markit.