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Saturday, 29 May 21
SKULD’S IMO 2020 SULPHUR CAP EXPERIENCE
 More than a year has passed since the International Maritime Organization (IMO) mandate for the 0.50% sulphur cap for marine fuel (MARPOL Annex VI) came into force. The regulation orders ships to only use marine fuels with a sulphur content of no more than 0.50% sulphur. Ships fitted with an approved type of exhaust gas cleaning system (EGCS) or scrubbers may continue to use high sulphur fuel oils. This mandate is part of the IMO efforts to reduce air pollution and improve health and environmental conditions especially for communities close to coastal areas or ports.
Prior to 1 January 2020, there were extensive discussions in the industry on what to expect regarding the challenges VLSFO would pose in terms of operational issues and engine damage as well as challenges regarding supply of VLSFO. The most frequent parameter limits deviating from the ISO 8217 standard, reported by our members and clients, are TSP (Total Sediments Potential), Aluminium and Silicon, Sulphur, Pour Point, Flash Point and Viscosity. We see several cases regarding increased sludge deposits in the fuel system, increased sludge accumulation in the purifiers, as well as clogged fuel oil filters. Others have experienced increased wear and tear of cylinder liners, broken piston rings, fuel pumps or other components, due to increased amounts of catalytic fines in the fuel oil. Some members have de-bunkered fuel which cannot be handled and treated onboard.
Interestingly, the number of claims reported to Skuld are not significantly higher for VLSFO compared to other fuel. If we look at the bad bunker cases in 2019 (FDD and CLH) the number of claims are higher than before the introduction of the IMO 2020 fuel. In 2019 Skuld saw 435 bunker related claims on FDD and CLH combined, compared to 369 in 2020. Skuld also experiences a decrease in bunker related issues and claims in Q1 of 2021 compared to Q1 in 2020. In total, Skuld can report 30 cases so far in 2021.
Skuld always advises its members and clients to perform a proper due diligence when ordering or procuring bunker. It is very important to always conduct a vetting procedure when selecting good bunker suppliers. Always check the sales terms like time bars, sampling clause as well as the warranty as to the fitness of the fuel. Always ask for documentation of fuel batches from the fuel supplier. Ask, and always check the Certificate of Quality prior to bunkering. We also recommend the ISO 8217:2017 standard rather than the more commonly used ISO 8217:2010. Also, avoid mixing of different types of fuels, as VLSFO is very sensitive and even small amounts of co-mingling will make the fuel unstable.
When using VLSFO blends the operators should be aware of the potential operational challenges they may be facing. ISO 8217 does not include testing for WAT (Wax Appearance Temperature) and WDT (Wax Disappearance Temperature), thus measuring only the Pour Point is insufficient to determine the cold flow properties of the fuel. When the WAT and WDT results are high the operator needs to consider increasing the temperature setting of the purifiers, as well as the storage, settling and service tanks.
VLSFO blends which tend to become unstable contain high sediments that tend to fall out of suspension when the fuel is heated above the required temperature. The fuel temperature must then be reduced and maintained as per separator manufacturer’s recommendations. VLSFO with low viscosity, but with a high WDT / WAT, needs to be heated to ensure correct viscosity or stable flow and to prevent wax formation. There is also a risk of operational issues such as wax formation when the fuel temperature drops below the WAT. Fuel with low viscosity, high WDT/WAT and high level of Aluminium + Silicon (cat fines) might be difficult to treat onboard.
Skuld’s members and clients have experienced that the IMO 2020 0.50% Sulphur Cap presents some additional challenges. As a new type of marine fuel being introduced in the industry, crew onboard did not have enough experience on how to handle and treat this type of fuel at the start of 2020. Operational issues, not linked to the fuel quality but more on the understanding of the characteristics or nature of VLSFO, have included issues related to the paraffinic nature of the fuel, cold flow properties, lower viscosity, as well as other parameters. Today, Skuld sees a greater understanding by the industry and operators and less of those ‘mysterious’ problems involving filter clogging and purification problems experienced in the first and second quarter of 2020. The onboard operators are increasingly more familiar with the actual characteristics or nature of VLSFO.
In Skuld’s opinion so far, the IMO 2020 Sulphur Cap represents a successful transition.
Source: Skuld
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Friday, 23 February 24
STRONG OUTLOOK FOR THE TANKER MARKET IN 2024 AND BEYOND - DNV
Several factors have aligned over the past two years to create a robust and profitable market for tanker owners, which is expected to drive newbuil ...
Friday, 23 February 24
AUSTRALIAN COAL FLOWS TO ASIA HOVER ABOVE LAST YEAR’S VOLUME TONNES - SIGNAL GROUP
In the final days of February, the dry bulk freight market appeared to maintain a relatively stable momentum, particularly evident in the large ves ...
Friday, 23 February 24
RUSSIAN COAL SHIPMENTS FALL 14% AS SANCTIONS BITE - BIMCO
During the first seven weeks of 2024, Russian coal shipments have fallen 14% y/y. Volumes have gradually declined since October 2023 when logistica ...
Thursday, 22 February 24
BIMCO PUBLISHES SHIP FINANCING FORMS TO ENSURE UNINTERRUPTED USE OF SHIPS
BIMCO has published two standard Quiet Enjoyment Letters (QELs), the first standard form QELs available to the industry, to offer a tool that can e ...
Monday, 19 February 24
METALS INVESTMENT: THE DARKEST HOUR IS JUST BEFORE THE DAWN - WOOD MACKENZIE
Things often seem at their worst just before they get better. In terms of meeting our net zero 2050 scenario, we’ve reached a watershed momen ...
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Showing 31 to 35 news of total 6871 |
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- Directorate Of Revenue Intelligence - India
- Price Waterhouse Coopers - Russia
- Electricity Generating Authority of Thailand
- Asmin Koalindo Tuhup - Indonesia
- Heidelberg Cement - Germany
- Wood Mackenzie - Singapore
- Economic Council, Georgia
- PetroVietnam Power Coal Import and Supply Company
- PNOC Exploration Corporation - Philippines
- Georgia Ports Authority, United States
- India Bulls Power Limited - India
- Krishnapatnam Port Company Ltd. - India
- Lanco Infratech Ltd - India
- Xindia Steels Limited - India
- Australian Commodity Traders Exchange
- Ministry of Mines - Canada
- Coalindo Energy - Indonesia
- Goldman Sachs - Singapore
- Mjunction Services Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Metalloyd Limited - United Kingdom
- London Commodity Brokers - England
- Iligan Light & Power Inc, Philippines
- Energy Link Ltd, New Zealand
- Pipit Mutiara Jaya. PT, Indonesia
- Vizag Seaport Private Limited - India
- TeaM Sual Corporation - Philippines
- Gujarat Sidhee Cement - India
- ICICI Bank Limited - India
- Semirara Mining and Power Corporation, Philippines
- Deloitte Consulting - India
- GMR Energy Limited - India
- Cement Manufacturers Association - India
- Mercuria Energy - Indonesia
- Central Java Power - Indonesia
- Salva Resources Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Kaltim Prima Coal - Indonesia
- Bhushan Steel Limited - India
- Star Paper Mills Limited - India
- Minerals Council of Australia
- Billiton Holdings Pty Ltd - Australia
- Vedanta Resources Plc - India
- Singapore Mercantile Exchange
- Jaiprakash Power Ventures ltd
- PowerSource Philippines DevCo
- Holcim Trading Pte Ltd - Singapore
- Ceylon Electricity Board - Sri Lanka
- Petrochimia International Co. Ltd.- Taiwan
- Gujarat Mineral Development Corp Ltd - India
- Agrawal Coal Company - India
- Oldendorff Carriers - Singapore
- IEA Clean Coal Centre - UK
- VISA Power Limited - India
- ASAPP Information Group - India
- Binh Thuan Hamico - Vietnam
- Cigading International Bulk Terminal - Indonesia
- Sindya Power Generating Company Private Ltd
- Jindal Steel & Power Ltd - India
- Parry Sugars Refinery, India
- Chamber of Mines of South Africa
- Australian Coal Association
- Interocean Group of Companies - India
- Orica Mining Services - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Mintek Dendrill Indonesia
- Medco Energi Mining Internasional
- International Coal Ventures Pvt Ltd - India
- Energy Development Corp, Philippines
- GAC Shipping (India) Pvt Ltd
- Standard Chartered Bank - UAE
- Africa Commodities Group - South Africa
- Parliament of New Zealand
- Trasteel International SA, Italy
- Ambuja Cements Ltd - India
- CIMB Investment Bank - Malaysia
- Coal and Oil Company - UAE
- Karaikal Port Pvt Ltd - India
- Global Coal Blending Company Limited - Australia
- Malabar Cements Ltd - India
- Kartika Selabumi Mining - Indonesia
- Coastal Gujarat Power Limited - India
- Formosa Plastics Group - Taiwan
- Wilmar Investment Holdings
- Miang Besar Coal Terminal - Indonesia
- Siam City Cement PLC, Thailand
- Videocon Industries ltd - India
- Simpson Spence & Young - Indonesia
- Kumho Petrochemical, South Korea
- Riau Bara Harum - Indonesia
- Altura Mining Limited, Indonesia
- MS Steel International - UAE
- LBH Netherlands Bv - Netherlands
- Bayan Resources Tbk. - Indonesia
- Aditya Birla Group - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sojitz Corporation - Japan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Pendopo Energi Batubara - Indonesia
- Rio Tinto Coal - Australia
- Leighton Contractors Pty Ltd - Australia
- Romanian Commodities Exchange
- Planning Commission, India
- Eastern Energy - Thailand
- Kohat Cement Company Ltd. - Pakistan
- The Treasury - Australian Government
- Barasentosa Lestari - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Thiess Contractors Indonesia
- Bharathi Cement Corporation - India
- Larsen & Toubro Limited - India
- Indonesian Coal Mining Association
- Eastern Coal Council - USA
- Rashtriya Ispat Nigam Limited - India
- Toyota Tsusho Corporation, Japan
- Petron Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Bangladesh Power Developement Board
- McConnell Dowell - Australia
- Neyveli Lignite Corporation Ltd, - India
- AsiaOL BioFuels Corp., Philippines
- Borneo Indobara - Indonesia
- Timah Investasi Mineral - Indoneisa
- Power Finance Corporation Ltd., India
- Madhucon Powers Ltd - India
- Kepco SPC Power Corporation, Philippines
- PTC India Limited - India
- Dalmia Cement Bharat India
- Tata Chemicals Ltd - India
- South Luzon Thermal Energy Corporation
- Intertek Mineral Services - Indonesia
- Central Electricity Authority - India
- Ministry of Transport, Egypt
- Makarim & Taira - Indonesia
- SN Aboitiz Power Inc, Philippines
- Electricity Authority, New Zealand
- Siam City Cement - Thailand
- SMC Global Power, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Indo Tambangraya Megah - Indonesia
- Sical Logistics Limited - India
- Semirara Mining Corp, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Marubeni Corporation - India
- San Jose City I Power Corp, Philippines
- Bukit Makmur.PT - Indonesia
- Grasim Industreis Ltd - India
- Sakthi Sugars Limited - India
- Kobexindo Tractors - Indoneisa
- Maharashtra Electricity Regulatory Commission - India
- Gujarat Electricity Regulatory Commission - India
- Global Green Power PLC Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- GVK Power & Infra Limited - India
- Essar Steel Hazira Ltd - India
- Therma Luzon, Inc, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indian Energy Exchange, India
- The University of Queensland
- Global Business Power Corporation, Philippines
- New Zealand Coal & Carbon
- Merrill Lynch Commodities Europe
- Orica Australia Pty. Ltd.
- Baramulti Group, Indonesia
- Sree Jayajothi Cements Limited - India
- Meralco Power Generation, Philippines
- Antam Resourcindo - Indonesia
- European Bulk Services B.V. - Netherlands
- Directorate General of MIneral and Coal - Indonesia
- Ministry of Finance - Indonesia
- Edison Trading Spa - Italy
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Port Waratah Coal Services - Australia
- Attock Cement Pakistan Limited
- Commonwealth Bank - Australia
- Renaissance Capital - South Africa
- Indian Oil Corporation Limited
- Samtan Co., Ltd - South Korea
- Bahari Cakrawala Sebuku - Indonesia
- Indogreen Group - Indonesia
- Aboitiz Power Corporation - Philippines
- Tamil Nadu electricity Board
- Globalindo Alam Lestari - Indonesia
- Thai Mozambique Logistica
- Uttam Galva Steels Limited - India
- IHS Mccloskey Coal Group - USA
- OPG Power Generation Pvt Ltd - India
- Bhatia International Limited - India
- Anglo American - United Kingdom
- Carbofer General Trading SA - India
- SMG Consultants - Indonesia
- Indika Energy - Indonesia
- Savvy Resources Ltd - HongKong
- CNBM International Corporation - China
- Sarangani Energy Corporation, Philippines
- Latin American Coal - Colombia
- Ind-Barath Power Infra Limited - India
- Maheswari Brothers Coal Limited - India
- Bulk Trading Sa - Switzerland
- Bukit Baiduri Energy - Indonesia
- The State Trading Corporation of India Ltd
- Meenaskhi Energy Private Limited - India
- Posco Energy - South Korea
- Bhoruka Overseas - Indonesia
- Kideco Jaya Agung - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Independent Power Producers Association of India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- White Energy Company Limited
- GN Power Mariveles Coal Plant, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Mercator Lines Limited - India
- Alfred C Toepfer International GmbH - Germany
- Banpu Public Company Limited - Thailand
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