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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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Monday, 17 September 18
GLENCORE RETURNS TO JAPAN COAL TALKS SCUPPERED BY HIGH PRICES - BLOOMBERG
Mining giant Glencore Plc and Japanese utilities have resumed thermal coal supply negotiations, restarting talks that fell apart earlier this year ...
Monday, 17 September 18
SMALL PERCENTAGE OF THE WORLD FLEET WILL FIT SCRUBBERS - FORECASTS : METTE KRONHOLM FRAENDE
In recent months, there have been numerous reports of a strong pick-up in demand for scrubbers. On 1 January 2020, however, the number of ships fit ...
Saturday, 15 September 18
POWERING SUSTAINABLE DEVELOPMENT WITH LOW EMISSION COAL TECHNOLOGIES - WCA
In its 5th Strategic Energy Plan this year (2018), the Japanese Cabinet recognised coal as an important energy resource, necessary for the country& ...
Friday, 14 September 18
10 YEARS ON FROM LEHMAN, HOW IS SHIPPING'S "HANGOVER"? - CLARKSONS RESEARCH
On 15th September 2008, the collapse of Lehman Brothers crystallised the financial crisis and the onset the worst economic downturn for a century. ...
Thursday, 13 September 18
OPEC SEES SLOWER 2019 OIL DEMAND GROWTH, WARNS ON ECONOMY
Crude Oil Price Movements
In August, the OPEC Reference Basket declined by $1.01 m-o-m, settling at $72.26/b. Crude oil futures were also down ...
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Showing 1616 to 1620 news of total 6871 |
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- Trasteel International SA, Italy
- Independent Power Producers Association of India
- GVK Power & Infra Limited - India
- IHS Mccloskey Coal Group - USA
- Semirara Mining and Power Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Alfred C Toepfer International GmbH - Germany
- CIMB Investment Bank - Malaysia
- Kideco Jaya Agung - Indonesia
- Xindia Steels Limited - India
- Indo Tambangraya Megah - Indonesia
- TeaM Sual Corporation - Philippines
- LBH Netherlands Bv - Netherlands
- Directorate Of Revenue Intelligence - India
- Edison Trading Spa - Italy
- Banpu Public Company Limited - Thailand
- Binh Thuan Hamico - Vietnam
- Kumho Petrochemical, South Korea
- Bharathi Cement Corporation - India
- Minerals Council of Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Wood Mackenzie - Singapore
- Ind-Barath Power Infra Limited - India
- Altura Mining Limited, Indonesia
- Makarim & Taira - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- Standard Chartered Bank - UAE
- Metalloyd Limited - United Kingdom
- Bulk Trading Sa - Switzerland
- Singapore Mercantile Exchange
- Siam City Cement PLC, Thailand
- Parliament of New Zealand
- IEA Clean Coal Centre - UK
- Port Waratah Coal Services - Australia
- Siam City Cement - Thailand
- PowerSource Philippines DevCo
- Iligan Light & Power Inc, Philippines
- Ministry of Finance - Indonesia
- Gujarat Sidhee Cement - India
- Pendopo Energi Batubara - Indonesia
- Goldman Sachs - Singapore
- Sarangani Energy Corporation, Philippines
- White Energy Company Limited
- Dalmia Cement Bharat India
- Global Green Power PLC Corporation, Philippines
- Rio Tinto Coal - Australia
- Global Business Power Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ambuja Cements Ltd - India
- Bhatia International Limited - India
- Australian Commodity Traders Exchange
- San Jose City I Power Corp, Philippines
- Mjunction Services Limited - India
- Maheswari Brothers Coal Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- SMG Consultants - Indonesia
- Star Paper Mills Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Timah Investasi Mineral - Indoneisa
- GN Power Mariveles Coal Plant, Philippines
- Attock Cement Pakistan Limited
- PNOC Exploration Corporation - Philippines
- Grasim Industreis Ltd - India
- Riau Bara Harum - Indonesia
- Indian Energy Exchange, India
- Neyveli Lignite Corporation Ltd, - India
- CNBM International Corporation - China
- TNB Fuel Sdn Bhd - Malaysia
- Mercator Lines Limited - India
- Romanian Commodities Exchange
- Barasentosa Lestari - Indonesia
- Manunggal Multi Energi - Indonesia
- Aboitiz Power Corporation - Philippines
- Thiess Contractors Indonesia
- Deloitte Consulting - India
- Meenaskhi Energy Private Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Petron Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Medco Energi Mining Internasional
- Ministry of Mines - Canada
- Indogreen Group - Indonesia
- Posco Energy - South Korea
- Marubeni Corporation - India
- Central Electricity Authority - India
- Baramulti Group, Indonesia
- Semirara Mining Corp, Philippines
- Electricity Generating Authority of Thailand
- Chettinad Cement Corporation Ltd - India
- Renaissance Capital - South Africa
- Agrawal Coal Company - India
- Anglo American - United Kingdom
- Bayan Resources Tbk. - Indonesia
- Commonwealth Bank - Australia
- Electricity Authority, New Zealand
- Thai Mozambique Logistica
- India Bulls Power Limited - India
- Sinarmas Energy and Mining - Indonesia
- New Zealand Coal & Carbon
- Cigading International Bulk Terminal - Indonesia
- Energy Development Corp, Philippines
- Kobexindo Tractors - Indoneisa
- Therma Luzon, Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- South Luzon Thermal Energy Corporation
- Georgia Ports Authority, United States
- Gujarat Electricity Regulatory Commission - India
- VISA Power Limited - India
- McConnell Dowell - Australia
- Bangladesh Power Developement Board
- The State Trading Corporation of India Ltd
- Kalimantan Lumbung Energi - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- OPG Power Generation Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Mercuria Energy - Indonesia
- Madhucon Powers Ltd - India
- Formosa Plastics Group - Taiwan
- Coastal Gujarat Power Limited - India
- Vedanta Resources Plc - India
- Eastern Energy - Thailand
- Sakthi Sugars Limited - India
- Indika Energy - Indonesia
- Aditya Birla Group - India
- SN Aboitiz Power Inc, Philippines
- Sree Jayajothi Cements Limited - India
- GMR Energy Limited - India
- Kepco SPC Power Corporation, Philippines
- Meralco Power Generation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Larsen & Toubro Limited - India
- Essar Steel Hazira Ltd - India
- Heidelberg Cement - Germany
- Lanco Infratech Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Economic Council, Georgia
- Orica Australia Pty. Ltd.
- PetroVietnam Power Coal Import and Supply Company
- European Bulk Services B.V. - Netherlands
- Africa Commodities Group - South Africa
- Ceylon Electricity Board - Sri Lanka
- Intertek Mineral Services - Indonesia
- Australian Coal Association
- Savvy Resources Ltd - HongKong
- GAC Shipping (India) Pvt Ltd
- Leighton Contractors Pty Ltd - Australia
- Latin American Coal - Colombia
- Karaikal Port Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Merrill Lynch Commodities Europe
- AsiaOL BioFuels Corp., Philippines
- Sical Logistics Limited - India
- Miang Besar Coal Terminal - Indonesia
- Indian Oil Corporation Limited
- Mintek Dendrill Indonesia
- Kaltim Prima Coal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Carbofer General Trading SA - India
- Borneo Indobara - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Indonesian Coal Mining Association
- Asmin Koalindo Tuhup - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Tata Chemicals Ltd - India
- Globalindo Alam Lestari - Indonesia
- Planning Commission, India
- Petrochimia International Co. Ltd.- Taiwan
- Sindya Power Generating Company Private Ltd
- Jaiprakash Power Ventures ltd
- Rashtriya Ispat Nigam Limited - India
- Malabar Cements Ltd - India
- ICICI Bank Limited - India
- Wilmar Investment Holdings
- Parry Sugars Refinery, India
- Tamil Nadu electricity Board
- Krishnapatnam Port Company Ltd. - India
- Sojitz Corporation - Japan
- Toyota Tsusho Corporation, Japan
- Bukit Makmur.PT - Indonesia
- The University of Queensland
- Gujarat Mineral Development Corp Ltd - India
- Videocon Industries ltd - India
- Global Coal Blending Company Limited - Australia
- The Treasury - Australian Government
- PTC India Limited - India
- Antam Resourcindo - Indonesia
- ASAPP Information Group - India
- Central Java Power - Indonesia
- Coal and Oil Company - UAE
- MS Steel International - UAE
- Coalindo Energy - Indonesia
- Simpson Spence & Young - Indonesia
- Price Waterhouse Coopers - Russia
- Eastern Coal Council - USA
- SMC Global Power, Philippines
- Cement Manufacturers Association - India
- Orica Mining Services - Indonesia
- Chamber of Mines of South Africa
- Samtan Co., Ltd - South Korea
- Kartika Selabumi Mining - Indonesia
- Bhoruka Overseas - Indonesia
- Bhushan Steel Limited - India
- Uttam Galva Steels Limited - India
- Kapuas Tunggal Persada - Indonesia
- Salva Resources Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Jindal Steel & Power Ltd - India
- Straits Asia Resources Limited - Singapore
- Energy Link Ltd, New Zealand
- Ministry of Transport, Egypt
- London Commodity Brokers - England
- Vizag Seaport Private Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Oldendorff Carriers - Singapore
- Interocean Group of Companies - India
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