Higher energy-yield with superior fuel combustion
While deliberations on meeting the IMO’s goal of cutting GHG emissions from shipping by 2050 progress, we need to focus on technology that is available and to improve fuel combustion. When fuel combustion is improved, emissions and engine wear are reduced, and fuel economy improves. At an IMarEST UAE branch technical meeting, Ocean2Door India presented the benefits of FuelSpec® Combustion Catalyst, which is a bridge technology that will allow shipping to burn less fossil fuel, in a significantly cleaner operation, as we continue to benefit from the Blue economy.
Delivering the welcome address, NIKEEL IDNANI, Honorary Secretary IMarEST UAE branch, highlighted that complete fuel combustion leads to reduced – emissions and engine wear. He pointed out that marine diesel engines have been optimized in their design to operate at maximum efficiency.
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Tanker market looks for more balance down the line
The tanker market’s balance of demand and supply could be headed towards a more sustainable future down the line. In its latest weekly report, shipbroker Allied said that “the tanker market has been in a state of despair since the pandemic brought an almost complete collapse of global demand for crude oil. While other major bulk commodities have since shown a remarkable recovery path in the demand levels, including energy commodities such as coal and natural gas, crude oil continues to lag behind finding it difficult to place any firm foothold on market support for higher crude oil consumption. For many years now fossil fuels have been battling the increased surge in market share gained by renewable sources of energy as well as a continual push by regulators for lower emissions and better energy efficiency”.
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Decarbonization of shipping – emerging alternative fuels from a us perspective
While the impact of COVID-19 on seafarers and port congestion have grabbed headlines over the past year, no single issue has dominated the maritime industry press more than decarbonization as climate change represents the greatest challenge of this century. According to the U.S. Environmental Protection Agency (EPA), transportation – including road, rail, air and marine – contribute about 14 percent of the global greenhouse gas (GHG) emissions. Shipping alone transports close to 80 percent of global trade by volume and is estimated to contribute 2-3 percent of GHG emissions. These numbers are propelling the shipping sector into the decarbonization limelight. In response, the International Maritime Organization’s (IMO) ambitious strategy is to reduce total GHG emissions from shipping by 50 percent compared to 2008 levels by 2050 and to reduce the carbon intensity of shipping by at least 40 percent by 2030 (and 70 percent by 2050).
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Libyan oil market could offer support to the Aframax Mediterranean market
The Aframax Mediterranean market stands to benefit from a potential recovery of Libya’s oil production, however difficult this may sound at present. In its latest weekly report, shipbroker Gibson said that “in recent years, despite holding the largest oil reserves in Africa and the 9th largest reserves in the world estimated at 48.40 billion barrels, Libya has gone from a top OPEC producer to struggling to maintain a consistent level of production and exports. Prior to the 2011 Libyan civil war, daily output was 1.6mbd; however, since then production has failed to return to this level, apart from a brief period reaching 1.55mbd just once in September 2012. This reflects the ongoing political instability in the country as competing factions fight for control of the country’s valuable oil fields operated by NOC”.
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Dry bulk market: strong finish to a lackluster week
The Capesize market struggled to hold its value this week as rates ebbed away across all routes. Closing Friday some reprieve was found as the Capesize 5TC closed on a positive up note +1888 to settle at $13,888. The Pacific region which experienced stronger swings compared to the other regions saw the Transpacific C10 change +1546 week on week concluding at $9,125. In the Atlantic rates were seen to dip midweek, yet pushed up strongly on Friday as several stronger fronthaul fixtures were reported although some of these for breaching ice prone regions. The Fronthaul C9 was seen closing up +5600 to $37,350. The Brazil to China C3 market was relatively quiet as it also softened throughout the week. Yet it was also swept up in the positive end of week sentiment as it closed +0.685 to settle at $21.605. On a time charter basis the Brazil to China C14 now prices at $10,973. Moving into next week on a positive note means the market can likely regain some lost ground in the first few days, but whether it has the legs to move on further remains to be seen.
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Australia remains a key exporter of iron ore to China
Tensions aside, China remains Australia’s biggest market for iron ore, accounting for almost 80 percent of its exports in 2021. In a recent weekly report, shipbroker Banchero Costa noted that “2021 was still a reasonably positive year for global iron ore trade, despite China’s cooling demand, with the rest of the world stepping in with iron ore imports to fill in the gap. Total global loadings in the 12 months of 2021 were up +0.6 percent y-o-y to 1554.1 million tonnes, according to vessels tracking data from Refinitiv. Mainland China accounted for 67 percent of global seaborne iron ore imports, and saw imports decreased by -6.9 percent y-o-y to 1043.6 mln tonnes in 2021. According to the shipbroker, things were looking up in the rest of the world. Imports to Japan increased by +14.6 percent y-o-y to 98.6 mln tonnes in 2021. Imports to the European Union surged by +15.6 percent y-o-y to 83.0 mln tonnes in 2021.