Although the 1 January switch to maximum 0.5% low-sulphur fuel for shipping appears to have passed without major disruption, liner consultancy Alphaliner has reported instances of idle containerships waiting for compliant fuel.And Reuters via gCaptain, January 9:
The consultant said it had recorded “several cases of laden ships at anchor, apparently waiting for LSFO [low-sulphur fuel oil] bunkers”.
It said the carrier most affected was Singapore-based Pacific International Lines (PIL), which apparently has had at least six vessels anchored off of its home port since late last month, awaiting bunker supplies – all panamax ships deployed on Asia-West Africa tradelanes.
As the main bunkering hub in Asia, Singapore has seen high demand for LSFO push the price for the compliant fuel to over $700 per ton, from around $550 at the beginning of December.
Intra-Asia carriers will be particularly badly hit by this massive hike, given that HFO (heavy fuel oil) industry bunkers were available at below $300 per ton. Indeed, even regional carriers that have been able to secure low-sulphur fuel surcharges from customers will now find them inadequate to cover their additional operating costs.
And given already slim margins for intra-Asia carriers, some operators could be forced to rationalise networks and cull services in the coming weeks.....MORE
Rising Prices Show Tighter Supplies of Cleaner Fuel for Global Shipping
The price of very low-sulfur fuel oil has risen in recent months, a sign of increasing worry there is not enough of the fuel to comply with new global shipping laws that took effect this year, market participants said.Recently:
Very low-sulfur fuel oil (VLSFO) lately has started to trade at levels comparable to marine gasoil, a type of diesel fuel used by tankers. That is an indication that refineries may need to increase production of VLSFO as tankers shift from dirtier, high-sulfur fuel to a cleaner product to comply with International Maritime Organization regulations designed to reduce smog....MUCH MORE
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