WORLDWIDE SHIPPING INDUSTRY
Fujairah stockpiles climb to record on 11pc jump in light distillates
Oil product inventories in the Fujairah trading hub rose 2 percent week on week to a record 25.749 million barrels, led by an 11 percent jump in gasoline and other light distillates, data released Wednesday by the Fujairah Oil Industry Zone at the city’s port showed.
Light products inventories jumped to 11.975 million barrels, the highest since January 28, and exceeding the total for marine fuel and other heavy residues for the first time since April 1, the data showed. Heavy residues stockpiles dropped 5.2percent to 11.782 million barrels, while middle distillates inventories declined 1percent to 1.992 million barrels. Total Fujairah stockpiles were up 48 percent from the end of 2018, led by an 89 percent climb in heavy distillates and residues. Middle distillates were up 35percent and light distillates up 24percent. Light distillates include gasoline, naphtha and condensates that are stored in white product tanks and have an API of 45 degrees and above. Middle distillates include gasoil, diesel, marine bunker gasoil, jet fuel and kerosene. Heavy products are fuel oils used for marine bunkers and power generation.
[divider style=”normal” top=”20″ bottom=”20″]
20 Million barrels of Iranian crude sits at China’s Dalian Port
Some 20 million barrels of Iranian oil sitting on China’s shores in the northeast port of Dalian for the past six months now appears stranded as the United States hardens its stance on importing crude from Tehran. Iran sent the oil to China, its biggest customer, ahead of the reintroduction of U.S. sanctions last November, as it looked for alternative storage for a backlog of crude at home.
The oil is being held in so-called bonded storage tanks at the port, which means it has yet to clear Chinese customs. Despite a six-month waiver to the start of May that allowed China to continue some Iranian imports, shipping data shows little of this oil has been moved.
Traders and refinery sources pointed to uncertainty over the terms of the waiver and said independent refiners had been unable to secure payment or insurance channels, while state refiners struggled to find vessels.
[divider style=”normal” top=”20″ bottom=”20″]
[ads1]
Newbuilding orders focus on various types of tonnage
A number of deals were concluded in the newbuilding market this past week. In its latest weekly report, shipbroker Clarkson Platou Hellas said that “having been under discussion for some months, COSCO Shipping have now signed contracts for a total of 16 firm plus two option Newcastlemax at a number of yards in China for carriage of Bauxite from Guinea to China. COSCO Yangzhou took orders for eight firm plus two options; Beihai and Xingang shipyards (both within the CSIC Group) signed for three ships each; and DACKS secured contracts for two vessels. Delivery of the series is primarily in 2021, although some later vessels in 2022.
One order in tankers, with clients of Clients of Sun Enterprises understood to have ordered two firm plus one option 50,000dwt MRs at HMD, for delivery within the end of 2020. Wallenius SOL (JV) announced placing orders for two firm plus two option 5,800lm RoRos at Yantai CIMC Raffles for delivery in 2021.
[divider style=”normal” top=”20″ bottom=”20″]
Rising deliveries of Capesize ships pose a threat
Demolition of dry bulk ships in the first four months of 2019 was 120 percent higher than in the same period of 2018. Much of this increase comes from demolitions of Capesize ships, up from 1.1 m DWT between January and April 2018 to reach 3.4m DWT in the first four months of 2019. The 18 Capesize ships demolished this year, sailed away from the poor market conditions faced by these larger vessel sizes since 25 January 2019.
[divider style=”normal” top=”20″ bottom=”20″]
[divider style=”normal” top=”20″ bottom=”20″]
Coal stockpiles grow at Europe’s ports
Coal is piling up at ports across Europe, depressing both the cost of the fuel and price of electricity. Stockpiles at three European ports — Rotterdam, Amsterdam and Vlissingen — are near the highest since 2013.
Supplies built up during a warmer than usual winter and as governments tried to reduce emissions from the most polluting fossil fuel. The result is that inventories of the commodity are unusually high when they should be depleted from a season of high heating demand. Cheaper coal is one of the factors pushing down the cost of electricity from Germany to the Nordic region, taking the edge off a three-year rally for coal, which peaked at $100 a ton in October. Coal inventories in Europe reached more than 7 million tons earlier this month, almost double the amount seen at the same time in 2018, according to data from S&P Global Platts.