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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.

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The global oil price crash has also prompted a slide in the differential between lower (LSFO) and higher-sulphur fuel (HSFO) to as low as $40 a tonne, from over $300 at the start of the year, eating into profitability for companies who paid for scrubbers and lengthening the time for a return on their investment.

The plant’s emissions of small particulate matter hit a peak of 350 pounds per hour during an independent test conducted in January 2020 by an engineering firm Exxon hired to demonstrate its regulatory compliance.

Face Scrubber | Boie USABut with an average cost of $2 million to install just one, the stakes were already high for fleet operators often facing investments of more than $100 million. Now the industry financial squeeze, caused by a decline in demand for freight services due to the COVID-19 crisis, may mean scrubbers become less of an option for ship owners to comply with regulations.

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“With the narrow price differential, it doubles the length of time for zapata body scrubber payback. Seaways installed scrubbers on our highest-consuming ships and the payback period is likely within 2-3 years,” she told Reuters.

News of the crisis spread quickly. At 1.30am on Thursday morning, 16 hours after the sub sank, the underwater phone jangled to life. The line was crackly but both men heard the message: ‘Best wishes to Pisces crew and hope all goes well, from Queen Elizabeth.’

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The underwater radio telephone was working. A message from the surface reached them: the Voyager was heading back to Ireland, to fetch help .
. . help that was at least 30 hours away. Until then, the trapped men must simply cling to life and wait.

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As the sub lurched upwards, both men were hurled against the bulkhead. The plastic bag that had been their portable toilet burst. With the metal sphere jolting and spinning, they were helpless, thrown about in what Chapman called, ‘a crazy upside-down world of noise, foul smell and fear’.

Maintenance on such scrubbers, commonly used to control pollution, can lower emissions but requires shutting down a cat cracker for several weeks, hurting profitability, according to Exxon disclosures to the LDEQ.
Completely new systems can cost more than $1 billion.

Companies such as BP plc, Marathon Petroleum, Phillips 66 and Valero Energy Corp have made agreements with the EPA in recent years to slash emissions below federal standards to help settle pollution-related litigation, regulatory disclosures show.

“Considering the fact that fleet supply will likely tighten due to scrubber 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.

Apart from that there was a can of lemonade, half a flask of black coffee, a tin of powdered milk, a packet of sugar, two apples — plus three biscuits and the standard lifeboat ration of glucose tablets.

In the biggest shake up for the oil and shipping industries in decades, the IMO banned from the start of 2020 ships from using fuels with a sulphur content above 0.5%, compared with 3.5% previously, unless they are equipped with sulphur-stripping devices known as scrubbers.

LONDON, June 12 (Reuters) – Ship owners are postponing or cancelling the installation of “scrubbers” that extract harmful sulphur emissions from their vessels as the coronavirus pandemic tightens finances.

Seizing a spanner, Mallinson struggled to find a footing as he tried to undo the floor bolt that secured the 400lb lead block beneath the sub that gave it extra ballast — weight designed to help it hug the ocean floor.