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Argus Freight PDF
Argus Freight PDF
well-approved vessels. And the Mideast Gulf-east Asia assess- Kozmino-Singapore* 100 450,000 nc -
ment slipped by another WS0.5 to close at WS43.
Northern Europe
Westbound freight also declined, with the Mideast Gulf-
North Sea-northeast Asia* 270 4,350,000 +100000 -
US Gulf assessment slipping by WS0.5 to close at WS18.5, in
line with PBF chartering the Sea Ruby for a Basrah-US Gulf UKC-US Gulf 260 55 nc 8.87
voyage via the Cape route at WS18, with loading from 20
Cross UKC 135 80 nc 5.27
February.
By contrast the North Sea-east Asia lumpsum assessment UKC-US Gulf 135 42.5 nc 6.86
ticked higher again, gaining $100,000 to reach $4.35mn, Cross UKC 80 100 -2.5 6.21
where ST booked the Seaking for a Hound Point-east Asia
UKC-US Atlantic coast 80 82.5 -2.5 10.24
shipment with 20-22 February loading.
Primorsk-UKC 100 85 -2.5 6.89
West Africa-India rates weaken further UKC-US Gulf fuel oil 55 105 nc 16.74
Chartering rates from west Africa to India weakened on Mon-
Baltic-UKC fuel oil 30 180 nc 14.67
day due to a lack of enquiries from Indian charterers. There
was also a surplus of older and discounted vessels available Baltic-Med fuel oil 30 165 nc 21.96
for February-loading dates, which continued to weigh on the West Africa
freight market.
West Africa-US Gulf 260 55.5 -0.5 9.01
*$ lumpsum
In the VLCC market, Reliance replaced the Landbridge Dirty freight rates
Majesty with a Maran VLCC at an undisclosed rate to move Size Daily
Route ± $/t
’000t Worldscale
crude from the Agbami and Akpo terminals in Nigeria to
Sikka, India. The VLCC is scheduled to load the Nigerian Black Sea and Mediterranean
crude from 14 February. The west Africa to west coast India Novorossiysk-Med 140 60 nc 4.78
route was assessed $50,000 lower at $2.35mn. Black Sea-Med 135 62.5 nc 4.86
Chartering rates also declined in the corresponding Cross Med 135 60 nc 3.16
Suezmax market, where the lumpsum slipped by $100,000 Med/Black Sea-US Gulf 135 47.5 -2.5 7.88
to $1.45mn. Suezmax demand was sluggish, as VLCC stems Med/Black Sea-East* 135 1,800,000 -300,000 13.33
dominated the February-loading cargoes and Indian refiners Cross Med 80 107.5 -2.5 6.40
were less active in their purchasing of west African grades.
Black Sea-Med 80 110 nc 8.56
Med/Black Sea-US Gulf 80 100 nc 17.03
European Suezmaxes remain steady
Med-US Gulf fuel oil 55 102.5 nc 18.11
The Black Sea and Mediterranean Suezmax freight markets
Cross Med fuel oil 30 165 nc 8.83
opened the week steady. Rates stabilised following several
bookings of Suezmax vessels for Aframax cargoes in the Black Sea-Med fuel oil 30 175 nc 13.79
shipments to prevent the market softening further. Caribbean-Singapore* 270 3,600,000 nc 13.33
The Black Sea to Mediterranean Suezmax assessment Caribbean-China* 270 4,600,000 nc 17.04
was flat at WS62.5. Trafigura chartered the Genmar Maniate USGC-China* 270 4,400,000 nc 16.30
from Novorossiysk at WS60 for a 140,000t cargo with loading Caribbean-WC India* 270 3,100,000 nc 11.48
due on 16-17 February. ExxonMobil reportedly had a cargo Brazil-China 260 44 nc 13.14
remaining from Ceyhan to the UK continent/Mediterranean
USGC/Caribs-Singapore* 130 2,200,000 nc 16.92
for the beginning of February and Total was also looking for
USGC-China* 130 2,800,000 +75,000 21.54
coverage from Algeria to Europe from 10 February. The cost
Caribbean-USGC 130 70 nc 4.84
of a typical cross-Mediterranean cargo was flat at WS60.
Caribbean-UK continent 150 45 nc 5.96
West African Suezmax markets were steady as fresh
enquiry was light. Irving was reportedly looking to work a Caribbean-Panama 130 80 nc 2.88
cargo from Ceyhan to east coast Canada for mid-February Caribbean-US Gulf 70 90 nc 6.58
but other opportunities for shipowners were limited. The USGC-east coast Canada 70 72.5 nc 8.63
cost of freight from west Africa to the UK continent/Mediter- East coast Mexico-USGC 70 92.5 nc 3.96
ranean was flat at WS52.5, and remained unchanged to the Caribbean-UK continent 70 70 nc 9.30
US Gulf at WS47.5. Caribbean-US Gulf 50 105 nc 7.68
Ecuador-USWC 50 142.5 -5 13.85
East of Suez Aframax rates mixed East coast Mexico - USGC 50 105 nc 4.06
The east of Suez Aframax market was mixed on Monday, as
*$ lumpsum
a growing capacity surplus and sluggish demand affected
certain routes. But there were several replacement fixtures
Turkish straits delays and demurrage
that supported rates in north Asia.
Route units ±
The cost to move an 80,000t heated fuel oil cargo from
the Mideast Gulf to east Asia remained steady at WS90. But Delay at Turkish straits NB days 4 nc
charterers still had the option to book older tankers for their Delay at Turkish straits SB days 3 nc
voyage requirements. Shell took the 1996-built Eagle Beau- Black Sea-Med Suezmax demurrage $/day 25,000 nc
mont at an undisclosed rate to move heated fuel oil from Black Sea-Med Aframax demurrage $/day 20,000 nc
Jubail, Saudi Arabia to east Asia over prompt 30 January to
2 February loading dates. The fixture also had an option to
deliver the cargo to Fujairah, UAE. the Pacific Merchant with a Teekay tanker at $390,000 to
In southeast Asia, the Indonesia to Japan chartering rate move fuel oil for prompt 28-30 January dates.
increased by WS2.5 to WS85. At this rate Vitol replaced the But the freight rate from southeast Asia to east coast
Moscow with DHT Sophie to move fuel oil from Singapore to Australia declined by WS2.5 to WS92.5. Vitol replaced the
South Korea, with prompt loading on 30 January. On a short- Afra Hawthorn with a Teekay tanker to move crude from
er route from Singapore to south China, Sinopec replaced Kimanis, Malaysia to Geelong, Australia over 4 February
kept rates unchanged. The Caribbean-Singapore Suezmax Bunker prices (29 Jan) $/t
rate stayed at $2.2mn. The Caribbean-Europe rate for Low High Low High
150,000t shipments stayed at last-fixture levels of WS45.
380cst 180cst
Moderate long-haul demand for Aframax ships absorbed
some of the excess tonnage in the Caribbean, holding rates Fujairah 445.00 450.00 382.00 386.00
for shorter routes steady. The Caribbean-US Gulf coast Afra- South Korea 414.25 420.75 433.50 438.50
max rate was flat at WS90, a three-month low. Singapore 389.00 395.00 423.00 428.00
The Caribbean-Europe Aframax rate stayed at WS70.
Antwerp (3.5%S) 367.00 372.00 402.00 407.00
On the Pacific coast, vessel supply was more than suffi-
cient for weak Panamax demand in Ecuador and the rate for Rotterdam (3.5%S) 367.25 372.25 402.00 407.00
The price of 30,000 Baltic to UK continent freight held South Korea 625.00 630.00 635.00 640.00
steady at WS180. Charterers were slow to make cargoes Singapore 600.00 605.00 610.00 615.00
available but there was still a shortage of available tonnage
as lists shortened and momentum in the market continued Bunker prices (26 Jan) $/t
to favour owners. But there were suggestions that charterers Low High Low High
might have pushed to export more cargoes before ice re-
380cst 180cst
strictions came into place, limiting their short-term require-
ments which could push the market lower. Los Angeles 388.50 409.50 482.00 508.00
The Black Sea to Mediterranean rate was flat at WS175 Seattle 398.50 402.50 466.00 471.00
with no fixtures done on the route. Charterers had tentative Houston 348.00 353.00 526.00 534.00
bids in the market for several vessels and participants sug-
New York 374.50 379.50 416.00 421.00
gested the assessment could tick higher later in the week.
LPG freight rates
CLEAN TANKERS Route Size $/t
Transatlantic Medium Range rates tick higher Weekly Americas coal rates 29 Jan
The Medium Range (MR) UK continent-US Atlantic coast mar- Size
Route $/t ±26-Jan
ket ticked higher on Monday, although no fresh fixtures were ’000t
confirmed on the route. Panamax
The 37,000t UK continent-US Atlantic coast assessment US east coast - ARA 75 12.00 +0.25
gained WS5 to close at WS165. The route was untested, but US east coast - Japan 75 33.00 +2.00
rates firmed following a spate of bookings for MR shipments US east coast - India 75 29.50 nc
from the Baltic to UK continent, or from the later to west West coast North America - ARA 60 19.00 nc
Africa, which helped tighten the pool of available tonnage. West coast North America - Japan 75 15.00 +0.25
Puerto Bolivar - US Gulf 70 9.75 nc
And handysize freight in northern Europe continued to
Puerto Bolivar-Pecem, Brazil 70-75 14.75 nc
climb, while some in the market predicted that ice restric-
US Gulf - ARA 70 16.00 +1.00
tions will provide an additional boost to regional rates by
Capesize
restricting what vessels can load at specific ports. The US east coast - ARA 140 10.00 +0.75
Baltic-UK continent assessment closed WS10 higher on the US east coast - India 140 27.75 nc
day at WS200, in line with two fresh deals. BBNaft report- Handysize
edly put the British Cumulus on subjects for a 33,000t Puerto Bolivar - US east coast 30 11.75 nc
Primorsk-UK continent shipment at WS190 from 2 February, Puerto Bolivar-Itaqui, Brazil 40-50 13.00 nc
roughly equivalent to WS209 for a 30,000t cargo. And BP
booked the Torm Saone for a Riga-UK continent run from 8 Petroleum coke freight rates
February at WS195. Route Size ’000t $/t ±
News
around 4.35mn-4.36mn b/d, the minister said. integrated project, which previously included the joint con-
In addition to increasing southern export capacity, al- struction of a 300,000 b/d refinery alongside development of
Luaibi highlighted Iraq’s plans to diversify its export outlets. the field. The ministry's most recent statements list capacity
Head of state-owned marketer Somo Alaa al-Yasri said Iraq’s at 150,000 b/d. He added that the firm has withdrawn inter-
plan to start exporting crude from the northern Kirkuk fields est now that the project has been separated.
to Iran is scheduled to begin next week, an oil ministry The oil ministry is still in discussions with ExxonMobil
spokesman told Argus. This is a week later than planned, to invest in the multi-billion South Integrated project that
with the exports previously scheduled to begin by the end would develop Basrah's pipeline infrastructure, oil terminals
of January. But this depended on agreements with private and storage facilities. The project includes the Common
companies regarding trucking. Seawater Supply Project (CSSP). The ministry said in October
The oil ministry aims to complete the reconstruction it was in final stages of negotiations, but former oil minister
of a federally-owned damaged pipeline extending from Thamir Ghadhban suggested that discussions may not be
the Kirkuk oil fields in northern Iraq to the Turkish port of concluded until the first quarter of 2018. Al-Luaibi is meeting
Ceyhan by the end of the year. Oil officials suggested that the chief executive of ExxonMobil this evening.
the timeline for Iraq’s export project may be optimistic. The In total, investment opportunities for oil, gas and infra-
oil ministry has received 83 offers for the tendered pipe- structure in Iraq comes to over $20bn, al-Luaibi said.
line, which is around 350km long and will have a capacity of
around 1.2mn b/d. It will extend from the city of Baiji in the Asian fuel demand to outpace supply: S-Oil
northern Salahuddin province to Fishkabour on Iraq's border South Korean refiner S-Oil expects profit margins on oil prod-
with Turkey, which will allow the federal government to by- ucts to remain robust this year as steady growth in demand
pass the section of the crude link from Kirkuk to Ceyhan that exceeds net capacity additions in Asia-Pacific by 60pc.
is controlled by the Kurdistan Regional Government (KRG). New crude-processing capacity will exceed plant closures
Iraq is also working to rehabilitate its refineries in order in the region by 500,000 b/d, but demand will increase by
to become a net exporter of petroleum products. Iraq aims about 800,000 b/d, S-Oil said. Net capacity additions glob-
to reduce its import bill for oil products, al-Luaibi said. He ally will total 680,000 b/d, compared with an IEA estimate
added that in 2017 Iraq increased its refining capacity by for demand growth of 1.29mn b/d.
23pc. S-Oil also cited favourable market fundamentals for pet-
A total of 70,000 b/d of refining capacity was brought rochemicals. Demand for paraxylene (PX) in the Asia-Pacific
back online following the rehabilitation of four refineries in and Middle East regions will increase by almost 3.1mn t in
the north which were damaged by Islamist group Isis. Three 2018, exceeding capacity expansion of 2.1mn t. Downstream
of these include the 10,000 b/d Haditha, the 20,000 b/d demand growth for PX, polypropylene (PP) and benzene will
Siniya and the 30,000 b/d Kisik refineries. be solid, leading to wider profit margins.
The oil ministry said on Monday that the project to build PP capacity additions are scheduled to about match
a 300,000 b/d refinery and a petrochemical complex at demand growth at more than 2.7mn t, but some of those
Fao in Basrah has been awarded to two Chinese firms, one new units will be delayed by Chinese environmental regula-
of which is PowerChina. The ministry has also announced tions, S-Oil said. Margins for propylene oxide (PO) will be
the start of rehabilitation work on Salahuddin 2 unit at the boosted in this year’s first half as plant maintenance disrupts
300,000 b/d Baiji complex that is non-operational after suf- supplies, but capacity additions in the second half will ease
fering extensive war damage. Work on the 70,000 b/d unit upward pressure on prices.
should be completed in six to nine months, the ministry said. The mostly bullish market outlook follows a fourth
Al-Luaibi added today that Iraq aims to operate 50pc of the quarter in which S-Oil’s profit margins remained strong, but
refinery by the end of the year. Plans have been drawn up to narrowed from earlier in the year. Supplies of refined fuels
rehabilitate a second 70,000 b/d unit at the plant. increased in October-December as new capacity came on
Tenders to build several new refineries in Iraq are ongo- stream and refiners on the US Gulf Coast recovered from
ing, but deadlines for bids continue to get postponed. Invest- Hurricane Harvey. The benchmark Singapore refining margin
ment interest has been thin with foreign firms concerned was 19pc higher than a year earlier at $5/bl, but down from
the location of some of the plants, far from ports, could $5.50/bl in the third quarter of 2017.
result in the domestic market capturing oil product sales Fourth-quarter margins on PP, PX, benzene and lube base
completely. This would mean returns on potential investors' oils also narrowed late in the year. The average PP spread
funding would depend on the government's ability to pay for was $348/bl, down from $356/bl a year earlier and $413/bl
products. in the third quarter.
Iraq said in October last year that Chinese state-owned South Korean refiners benefitted from record exports last
CNPC had expressed interest in participating in the Nasiriya year, as sales to such countries as Vietnam and the Philip-
pines surged. S-Oil, which relies on exports for more than sized plant at Dhi Qar.
half of its sales, posted an 8.5pc gain from a year earlier in The awarding of a contract for the Fao refinery is a step
the fourth quarter to 385,000 b/d. forward for the Iraqi government, which aims to achieve
Fourth-quarter operating profit climbed by 25pc on the self-sufficiency in products and develop a petrochemical
year to 458.6bn won ($428.8mn), while revenue rose by 28pc export industry but which has had to postpone deadlines for
to W5.81 trillion. expression of interest on several occasions.
S-Oil’s new residue-upgrading and olefin-downstream The government aims to expand refining capacity by
complexes under construction in Ulsan were 94pc complete 1.3mn b/d through foreign investment contracts. But interest
at the end of 2017, more than two percentage points ahead has been thin with foreign firms concerned that the location
of schedule. The company still plans to start operations at of some of the plants far from sea ports could result in the
the new units in this year’s first half. Capital spending this domestic market capturing oil product sales completely.
year will drop by 24pc to an estimated W1.91 trillion, as The ministry has also announced the start of rehabilita-
the major project heads toward completion. Upgrading and tion work on Salahuddin 2 unit at the 300,000 b/d Baiji com-
maintenance costs are targeted to jump 51pc to W201.7bn. plex that is non-operational after suffering extensive war
damage. Work on the 70,000 b/d unit should be completed
CPC shuts Taoyuan refinery after fire in six to nine months, the ministry said. Plans have be drawn
Taiwan’s state-controlled CPC has shut its 200,000 b/d up to rehabilitate a second 70,000 b/d unit at the plant.
Taoyuan refinery after a fire early on Monday.
The fire hit at 06:40 local time today (22:40 GMT yester- Pemex crude production up in December
day) as CPC was attempting to restart the refinery’s 15,000 December crude production at Mexico’s state-run Pemex
b/d No.2 residue desulphurisation (RDS) unit after a near was up 0.3pc to 1.873mn b/d from the previous month and
one-month maintenance. down 8pc from December 2016, according to company data.
Initial investigations indicate the fire might have started Average production in 2017 reached 1.948mn b/d, mean-
at a damaged heating furnace tube. The fire has been extin- ing Pemex slightly surpassed its annual output target of
guished with no known casualties, but the refinery has been 1.944mn b/d.
shut as a result. Mexican officials have vowed to reverse by the end of
The Taoyuan refinery is a key producer of ultra-low sul- 2018 a decline in production that began in 2004, when out-
phur diesel (ULSD), accounting for around 30,000 b/d or 20pc put peaked at 3.4mn b/d. Pemex's annual forecast for 2018
of CPC’s total ULSD output. CPC also operates the 300,000 says crude production will grow to 1.951mn b/d.
b/d Dalin refinery. December crude exports were 1.401mn b/d, up nearly
1pc from November and up over 25pc from December 2016.
Repsol takes desulphuriser, CHP offline Annual average exports for 2017 were down 1.6pc from
Spanish integrated Repsol is taking offline for maintenance 2016, at 1.174mn b/d.
a 35,000 b/d gasoil desulphuriser and a combined heat and During December the Americas remained Mexico’s big-
power (CHP) plant at its 240,000 b/d Petronor refinery in gest client, accounting for 50.8pc of all exports, followed by
Bilbao. Asia-Pacific and other regions (28.4pc) and Europe (20.7pc).
Petronor did not give the expected duration of the turn-
around but said production would not be affected. India’s crude output falls in December
The HD3 desulphuriser processes the heavy gasoil pro- India’s crude production fell by 2.1pc year on year in Decem-
duced by the refinery's 2mn t/yr delayed coking unit, which ber, prompting a rise in imports to meet stronger fuel sales.
is ramped up when the refinery processes heavier crudes Crude output was just over 709,000 b/d last month, ac-
such at Mexican Maya Blend and occasionally Canadian syn- cording to preliminary oil ministry data. Output fell by 0.4pc
thetic crudes. to 717,000 b/d in April-December, the first nine months of
The CHP produces power from by-products such as refin- India’s financial year, because of ageing fields and a lack of
ery gas and sells its excess electricity production to Spain's new discoveries.
power grid. Production at state-controlled upstream firm ONGC fell
by 5.6pc from a year earlier to 402,000 b/d, equivalent to
Iraq progresses refinery build work 57pc of national output.
Iraq's oil ministry said that the project to build a 300,000 b/d Indian fuel consumption in December rose by 7.5pc from
refinery and petrochemical complex at Fao in Basrah prov- a year earlier to 17.39mn t. Crude imports hit a near all-time
ince has been awarded to two Chinese companies. high at 4.64mn b/d last month, as domestic production was
And the ministry said that investors will soon be invited insufficient to meet growing demand. LNG imports rose by
to bid to build a 150,000 b/d refinery at Anbar and a similar 6.8pc from a year earlier to the equivalent of 65.5mn m³/d
on order with shipbuilder General Dynamics NASSCO, to be Scrubber uncertainty lingers for bunker buyers
delivered in the fourth quarter of 2019 and in the second As the January 20202 implementation date for new marine
quarter of 2020. Pasha Hawaii will take delivery of two con- fuel regulations draws nearer, the industry’s largest consum-
tainerships from shipbuilder Keppel AmFELS in the first and ers remain broadly indecisive on proposed exhaust scrubber
the third quarter of 2020. installations.
In less than 24 months International Maritime Organiza-
Pemex Madero refinery restart delayed: source tion (IMO) regulations will require vessels to burn 0.5pc
State-run Pemex will restart its 190,000 b/d Madero refinery sulphur maximum bunkers outside of Emission Control Areas
on Mexico's Gulf coast closer to 19 February instead of late (ECAs) to meet emissions limits, down from the current
January as first planned, sources close to operations told 3.5pc sulphur maximum bunker limit. Scrubbers enable
Argus. shipowners to comply with the new statutes on burning
The company said in December that everything was set high-sulphur residual fuel oil, rather than turn to higher-cost
for a late January restart after the plant was shut in August alternative fuels such as 0.5pc bunkers or liquefied natural
for an extensive maintenance program. The restart was gas.
originally scheduled for late December. But scrubber installations lack appeal among contain-
Delays in the purchase and supply process for new equip- ership, dry bulk and tanker vessel owners. A study by the
ment and machinery are the main reason for the later start US-headquartered organization International Council on
date, the source said. Clean Transportation (ICCT) estimated that in 2015 these
As Pemex is a state-run company, many of the purchase vessel classes accounted for 78pc of the global residual fuel
and supply contracts need to go through a public tender oil bunker demand: containerships for 30pc, bulk carriers
processes which adds transparency — but takes longer. for 25pc, oil tankers for 16pc and chemical tankers for 7pc.
Also, specialized parts and equipment needed to The study pegged global demand for residual bunker fuel at
modernize refineries are not usually in stock even with the 210.27mn t and for marine distillates at 49.52mn t in 2015.
manufacturer. Containership owners Hapag-Lloyd and Maersk noted last
“A usual timeframe for these parts to be available is 40 year that they will use 0.5pc sulphur bunkers to comply with
to 50 days, but the problem is they ordered the parts after the 2020 regulation rather than installing scrubbers. In 2016,
the refinery shut down," the source said. "They should have Maersk burned 10.12mn t of residual fuel oil and 617,000t of
placed the orders two or three weeks before shutting the marine distillates and following its approved merger with
refinery." containership owner Hamburg Sud, the new company will
Pemex did not respond to a request for comment from account for 19.3pc of the global containership fleet capac-
Argus. ity. Hapag-Lloyd merged with shipping company Compania
The Madero refinery has processed no crude since Sudamericana de Vapores (CSAV) at the end of December
September and only processed 9,425 b/d of crude in August. 2014 and in turn merged with United Arab Shipping Company
During January 2017 the plant processed up to 82,193 b/d. in March 2017. In the first nine months of 2017, Hapag-Lloyd
The delay will not help Mexico’s tough year in the refin- burned 2.47mn t of heavy bunker fuel and 369,200t of ma-
ing sector. The utilization rate in late 2017 was under 50pc rine distillates.
on average in the six refineries that form the country’s Japanese containership, dry bulk and tanker companies
national refining system. Kawasaki Kisen Kaisha (K Line), Mitsui OSK Lines (MOL) and
Madero had a 26pc utilization rate from January through Nippon Yusen Kabushiki Kaisha (NYK) also received final ap-
November, according to the latest statistics from the minis- proval to launch their joint venture company Ocean Network
try of energy (Sener). Express this month. The combined companies consumed over
This Tamaulipas-based unit is one of the main produc- 14mn t of heavy bunker fuel and marine distillates during
ers of jet fuel, a product that will be liberalized this year. their fiscal year 2016, which ended on 31 March 2017. NYK
Jet fuel imports have grown 73pc from November 2016 to commissioned scrubbers on two newbuild 56,000 dwt bulk
November 2017. carriers, which will be delivered by the end of 2018 and in
Mexico’s biggest refinery, the 330,000 b/d Salina Cruz, the first quarter of 2019, and MOL noted in its annual report
was affected last year by earthquakes and flooding which, that it plans to address the impact of the 2020 marine fuel
added to the Madero outage, resulted in the country’s worst regulations, which is expected to raise its marine fuel bill,
year in refined products output. Pemex's production of by increasing the freight rates it charges customers. In
gasoline, diesel, LPG, kerosene and fuel oil averaged 915,100 2016, MOL launched a study on the feasibility of scrubbers.
b/d, under the 1mn mark that Pemex uses as a reference. Separately, K Line tested a scrubber on its car carrier Drive
Green Highway in 2016, has not announced other scrubber the expenses to their chartering customers. Only two US-flag
initiatives after this test. vessel owners have installed scrubbers: Interlake Steamship,
Two other containership companies may be considering which retrofitted four bulk carriers and Matson, which retro-
scrubbers for newbuild orders, including CMA CGM and MSC. fitted three containerships.
In 2017, France-based CMA CGM signed a memorandum of Globally, scrubbers have gained traction with ferry and
understanding with the French oil and gas company Total, cruiseship operators, but these vessel classes account for
which will provide CMA CGM with 3.5pc sulphur bunkers minimal fuel oil demand. According to the ICCT’s study, pas-
for ships outfitted with scrubbers as well as 0.5pc sulphur senger and cargo ferries accounted for 3.5pc and cruiseships
fuel and LNG for bunkering. CMA CGM does not disclose its accounted for 4pc of residual fuel oil burn in 2015.
marine fuel consumption. CMA CGM merged with shipowner
Nepture Orient Lines (NOL) in September 2016. NOL is the
parent company of American President Lines (APL), which Announcement
retrofitted the 65,792 dwt containership APL England with a
The holiday calendar showing which Argus reports are
scrubber. Privately-owned containership company Mediter-
not published on which days is now available online
ranean Shipping Company (MSC) has four 23,000 twenty-foot
http://www.argusmedia.com/Methodology-and-
equivalent unit (TEU) containerships on order, but did not Reference/Publishing-Schedule
disclose if the vessels will be outfitted with scrubbers. In
2016, MSC burned 7.28mn t of heavy bunker fuel and 1.02mn
t of marine distillates.
If history is predictive of future shipowner behavior, it is
unlikely that containership, tanker and dry bulk vessel own- Announcement
ers will rush toward scrubber installation. In January 2015,
All data change announcements can be viewed online
the marine fuel sulphur limit in the ECAs dropped from 1pc
at www.argusmedia.com/announcements.
to 0.1pc. While the change impacted most of US territorial
Alternatively, to be added to the email distribution list
waters, the bulk of the US-flagged vessels operating in these for all announcements, please email:
areas switched from burning 1pc sulphur residual fuel oil to datahelp@argusmedia.com.
marine gasoil. Their bunker bill increased, but they passed
Transportation
illuminating the markets .