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Wednesday, 25 July 18
TANKER MARKET INSIGHT - DIMITRIS KOURTESIS
 We are now into the second half of 2018, which so far has not been a fruitful year for tankers. With 2020 quickly approaching we need to consider the implications arising from the new fuel directives. 2020 seems to be the year that there will be a noticeable increase in the cost of moving cargo, with the forces driving costs upwards being either scrubbers and/or the increased demand for cleaner fuels.
The need for cleaner fuels will not only boost demand for product tankers though. Given the much higher crude oil quantities the production of these cleaner fuels requires compared to HFO, a boost in crude oil demand and a consequent support on crude tanker freight rates appears to also be in the cards.
The increase in fuel costs will definitely increase revenues but not profits. Therefore small owners with older, less efficient units, not capable of installing scrubbers, will be forced to either merge with larger companies, who have the cash flow to support financing, or in some cases will have to sell/ scrap and exit the industry. This filtering process will separate companies that managed to evolve and endure through the cycle and concurrently will correct the oversupply of tonnage, which drives rates in some cases well below their operating expenses today.
Vessels equipped with scrubbers or eco units will have a competitive advantage and owners will be able to fix periods at levels including a premium, as charterers will prefer to charter compliant and fuel efficient units. The market right now for a 1 year time charter, medium range non eco / non scrubber equipped tanker trading in clean petroleum products is around USD 13,000 per day. On the other hand, an eco/scrubber equipped unit would get approximately USD 14,500 - 15,000 per day for the same period.
We can identify that the difference of USD 1,500 - 2,000 per day is the premium charterers are paying in order to be 2020 compliant and have efficient units under their time charter. Apart from Ship owners/operators and charterers, it's also quite interesting to see how modern refineries are getting prepared for these changes. According to HSBC's research on IMO 2020, four of the most technically advanced refineries, S-oil, SK Innovation, Reliance Industries and Repsol are further upgrading and investing in their plants. They target to eliminate their HFO production by early to mid-2020. Specifically, SKI will focus on refining only very low sulphur fuel oil (VLSFO). The goal of these refineries is to find themselves in a position where, come 2020, they have substantially decreased– or even better entirely eliminated – the production of HFO.
Mr. T. Veniamis on behalf of the Union of Greek Ship Owners, stated that Greek ship owners are working hard to comply with the 2020 requirements (0.5% sulfur cap). He also stressed the importance that these cleaner fuels are – aside from compliant – also safe for both the crew and the ship itself. To conclude, the general sentiment particularly for Owners with units up to MR size without scrubbers, is to patiently wait and plan day by day, as the investment of installing scrubbers on older units may not make financial sense given today’s fundamentals.
By Dimitris Kourtesis
Tanker Chartering Broker
Compiled by:
Intermodal Research & Valuations
Analysts:
Ms Eva Tzima
Disclaimer and legal disclosure: For any further queries please do not hesitate to contact our Research & Valuations Department. The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no reproducing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.
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Saturday, 20 October 18
PANAMAX: THE PACIFIC SAW A LARGE VOLUME OF FIXING, WITH INDONESIA AGAIN THE DRIVING FORCE - THE BALTIC BRIEFING
Capesize
A positive end to last week after a shaky start, with a Coaltrans taking participants out of the market early on and with rates slippi ...
Thursday, 18 October 18
SUPRAMAX: INDO/WC INDIA SUPRAS ARE FIXING AROUND MID $14000S P/D BASIS SPORE DELIVERY
Capesize
The volatile Cape market continues this week, especially in the Pacific says Fearnleys in its latest weekly report.
...
Thursday, 18 October 18
COAL SHORTAGE HITS POWER SECTOR AGAIN; HOW INDIA CAN GET ITS PRODUCTION RIGHT - ANIL SWARUP
By convincing states of the value proposition of increased production, the record production of Fy15 & Fy16 can be emulated.
The ...
Thursday, 18 October 18
CHINA POWER REFORM NEUTRAL ON GRIDS, PRESSURES IPP MARGINS - FITCH RATINGS
China's power sector reform has a broadly neutral impact on transmission grids although it will pressure the power producers' margins, says ...
Wednesday, 17 October 18
ESCROW SERVICE FOR BALTIC MEMBERS NOW LIVE
The Baltic Exchange’s Escrow Service for its members to hold deposits for ship sale transactions goes live today (15 October). The service is ...
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Showing 1586 to 1590 news of total 6871 |
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- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Anglo American - United Kingdom
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Minerals Council of Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- PowerSource Philippines DevCo
- Globalindo Alam Lestari - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Mercuria Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- McConnell Dowell - Australia
- Directorate Of Revenue Intelligence - India
- Kaltim Prima Coal - Indonesia
- Coal and Oil Company - UAE
- Ministry of Transport, Egypt
- Goldman Sachs - Singapore
- Tamil Nadu electricity Board
- Thiess Contractors Indonesia
- Tata Chemicals Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Gujarat Electricity Regulatory Commission - India
- Binh Thuan Hamico - Vietnam
- Rio Tinto Coal - Australia
- Malabar Cements Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Georgia Ports Authority, United States
- Vizag Seaport Private Limited - India
- Star Paper Mills Limited - India
- Agrawal Coal Company - India
- Attock Cement Pakistan Limited
- Toyota Tsusho Corporation, Japan
- San Jose City I Power Corp, Philippines
- Jindal Steel & Power Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Indonesian Coal Mining Association
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kepco SPC Power Corporation, Philippines
- Baramulti Group, Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- The University of Queensland
- Intertek Mineral Services - Indonesia
- Electricity Authority, New Zealand
- Ministry of Mines - Canada
- SN Aboitiz Power Inc, Philippines
- Romanian Commodities Exchange
- Kumho Petrochemical, South Korea
- Chamber of Mines of South Africa
- Siam City Cement PLC, Thailand
- Edison Trading Spa - Italy
- Gujarat Sidhee Cement - India
- Iligan Light & Power Inc, Philippines
- South Luzon Thermal Energy Corporation
- Makarim & Taira - Indonesia
- Barasentosa Lestari - Indonesia
- Singapore Mercantile Exchange
- Deloitte Consulting - India
- Asmin Koalindo Tuhup - Indonesia
- Dalmia Cement Bharat India
- White Energy Company Limited
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Formosa Plastics Group - Taiwan
- Sakthi Sugars Limited - India
- Posco Energy - South Korea
- Planning Commission, India
- PetroVietnam Power Coal Import and Supply Company
- International Coal Ventures Pvt Ltd - India
- Independent Power Producers Association of India
- CNBM International Corporation - China
- Meralco Power Generation, Philippines
- Xindia Steels Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Bangladesh Power Developement Board
- Bukit Baiduri Energy - Indonesia
- Marubeni Corporation - India
- Leighton Contractors Pty Ltd - Australia
- OPG Power Generation Pvt Ltd - India
- Renaissance Capital - South Africa
- Africa Commodities Group - South Africa
- London Commodity Brokers - England
- Carbofer General Trading SA - India
- Parry Sugars Refinery, India
- Bukit Makmur.PT - Indonesia
- Aboitiz Power Corporation - Philippines
- Borneo Indobara - Indonesia
- Coalindo Energy - Indonesia
- Eastern Coal Council - USA
- Antam Resourcindo - Indonesia
- Mercator Lines Limited - India
- Orica Australia Pty. Ltd.
- Riau Bara Harum - Indonesia
- Indian Energy Exchange, India
- Oldendorff Carriers - Singapore
- LBH Netherlands Bv - Netherlands
- Sindya Power Generating Company Private Ltd
- Latin American Coal - Colombia
- Energy Link Ltd, New Zealand
- Banpu Public Company Limited - Thailand
- Manunggal Multi Energi - Indonesia
- IEA Clean Coal Centre - UK
- Pendopo Energi Batubara - Indonesia
- Bulk Trading Sa - Switzerland
- Eastern Energy - Thailand
- Trasteel International SA, Italy
- Mintek Dendrill Indonesia
- Simpson Spence & Young - Indonesia
- Port Waratah Coal Services - Australia
- Salva Resources Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Bhushan Steel Limited - India
- Wilmar Investment Holdings
- Kideco Jaya Agung - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Kartika Selabumi Mining - Indonesia
- Global Green Power PLC Corporation, Philippines
- Vedanta Resources Plc - India
- CIMB Investment Bank - Malaysia
- Power Finance Corporation Ltd., India
- Semirara Mining Corp, Philippines
- ASAPP Information Group - India
- Aditya Birla Group - India
- Petron Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- The State Trading Corporation of India Ltd
- India Bulls Power Limited - India
- TeaM Sual Corporation - Philippines
- Ambuja Cements Ltd - India
- Heidelberg Cement - Germany
- Jorong Barutama Greston.PT - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Semirara Mining and Power Corporation, Philippines
- Bharathi Cement Corporation - India
- ICICI Bank Limited - India
- Indika Energy - Indonesia
- VISA Power Limited - India
- GVK Power & Infra Limited - India
- Parliament of New Zealand
- Central Electricity Authority - India
- Global Coal Blending Company Limited - Australia
- Interocean Group of Companies - India
- Videocon Industries ltd - India
- Straits Asia Resources Limited - Singapore
- SMG Consultants - Indonesia
- Grasim Industreis Ltd - India
- Global Business Power Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Indo Tambangraya Megah - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Standard Chartered Bank - UAE
- Kohat Cement Company Ltd. - Pakistan
- Medco Energi Mining Internasional
- Australian Coal Association
- Uttam Galva Steels Limited - India
- Madhucon Powers Ltd - India
- Electricity Generating Authority of Thailand
- Karaikal Port Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Bhatia International Limited - India
- SMC Global Power, Philippines
- Maheswari Brothers Coal Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Timah Investasi Mineral - Indoneisa
- Sojitz Corporation - Japan
- Bhoruka Overseas - Indonesia
- PTC India Limited - India
- Indian Oil Corporation Limited
- Bukit Asam (Persero) Tbk - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Chettinad Cement Corporation Ltd - India
- Siam City Cement - Thailand
- Savvy Resources Ltd - HongKong
- Economic Council, Georgia
- Indogreen Group - Indonesia
- New Zealand Coal & Carbon
- Wood Mackenzie - Singapore
- Essar Steel Hazira Ltd - India
- Meenaskhi Energy Private Limited - India
- GMR Energy Limited - India
- Lanco Infratech Ltd - India
- European Bulk Services B.V. - Netherlands
- Bayan Resources Tbk. - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Thai Mozambique Logistica
- Cement Manufacturers Association - India
- Price Waterhouse Coopers - Russia
- Therma Luzon, Inc, Philippines
- Central Java Power - Indonesia
- The Treasury - Australian Government
- Jaiprakash Power Ventures ltd
- Sree Jayajothi Cements Limited - India
- Billiton Holdings Pty Ltd - Australia
- Ministry of Finance - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Coastal Gujarat Power Limited - India
- Australian Commodity Traders Exchange
- MS Steel International - UAE
- Mjunction Services Limited - India
- GAC Shipping (India) Pvt Ltd
- Altura Mining Limited, Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Sarangani Energy Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Rashtriya Ispat Nigam Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Sical Logistics Limited - India
- Commonwealth Bank - Australia
- Kapuas Tunggal Persada - Indonesia
- Larsen & Toubro Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Merrill Lynch Commodities Europe
- Samtan Co., Ltd - South Korea
- IHS Mccloskey Coal Group - USA
- Orica Mining Services - Indonesia
- Energy Development Corp, Philippines
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