Cargill kickstarts maritime decarbonization with biofuels, methanol
US-based agricultural trader Cargill has ramped up a bio-bunkering program for its own shipping fleet and other shipowners as part of initial decarbonization efforts amid the industry switch to a multi-fuel, low-emission future, its top maritime executive said. Some major trading houses, such as Cargill and Trafigura, have been seeking to reduce supply-chain greenhouse gas emissions in recent years via introducing alternative fuels to their bunker usage and sales. In a recent interview with S&P Global Commodity Insights, Cargill Ocean Transportation President Jan Dieleman said the company has taken pragmatic and real steps towards maritime decarbonization with low-, zero carbon fuels. “We are doing already a significant amount of biofuels,” said Dieleman, whose company operates around 570 dry blk carriers. “We are actually both a user and a producer of biofuels. That is why I think we went a lot faster than many other people.”
Asia fuel oil-hsfo pares back for a fourth straight session
Asia’s high sulphur fuel oil (HSFO) market softened for a fourth consecutive session on Tuesday, though multiple bids for spot parcels continued to emerge. The 380-cst HSFO cash differential FO380-SIN-DIF fell to a premium of $25.17 a metric ton on Tuesday, while front-month refining crack FO380DUBCKMc1 edged lower to a discount of $7.64 a barrel at 0430 GMT. Meanwhile, very-low sulphur fuel oil (VLSFO) was range-bound. Cash differential MFO05-SIN-DIF closed at a premium of $3.40 a metric ton, while the refining crack LFO05SGDUBCMc1 slipped to a premium of $9.60 a barrel. The Hi-5 spread, which is the premium of 0.5 percent VLSFO over 380-cst HSFO, has begun to widen in recent sessions after the rally in HSFO gave way. Front-month Hi-5 FO05-380SGMc1 was pegged at $109.50 a metric ton, recovering to a one-month high, Refinitiv data showed. The spread had crunched significantly in July after the VLSFO market crashed.
Drewry: dry bulk equity index down 15.2pc in 2023
The Drewry Dry Bulk Equity Index dropped 15.2 percent YTD as a 28.5 percent slump between March and May was more than enough to offset an 18.4 percent jump in the first two months of 2023 and a 5.7 percent gain in June and July. Sell-side pressure in the aftermath of the banking crisis, a contraction in China’s manufacturing sector since April (indicated by a PMI lower than 50), and short-term macroecono mic headwinds led to a fall in the index between March and May. Additionally, lower 1Q23 earnings of dry bulk shipping companies also put pressure on their stock performance. The index underperformed the S&P 500, which moved up 17.3 percent YTD. In June and July, the Drewry Dry Bulk Equity Index improved 5.8 percent, but underperformed the S&P 500, which gained 9.8 percent. The uptrend in the index was primarily driven by double-digit gains in stock prices of Golden Ocean (11.0 percent) and Pacific Basin (10.9 percent).
Marine studies to protect our seas
The waters of the Arabian Gulf where Aramco operates — along with those of the Red Sea — boast some of the highest levels of diversity of marine life anywhere in the world, and we are playing our part to help protect those natural treasures.
Good decision-making requires good science, whether it’s for environmental conservation or resource management. A comprehensive understanding of the rich ecology of the Red Sea and Arabian Gulf is crucial to ensure sustainable use and conservation of these regions.
This is why Aramco has tapped into the expertise of local academic and scientific research institutions to help us understand and protect our surrounding seas.
Unlocking circularity: maximising value and minimising waste
Despite circularity being a hot topic across industries, very few systems are implemented to put materials back into circulation. Experts say we currently use 60 percent more resources than the Earth can provide. Switching to a circular economy is seen as the way forward, and according to research, the approach could unlock USD 4.5 trillion of value by 2030.
In a circular economy, products are kept in use for as long as possible through repairing, recycling and redesigning to minimise the use of the world’s resources, cut waste, and reduce carbon emissions.
Dieuwertje Ewalts, Circularity Lead Consulting at Deloitte Netherlands, says people often mistake circularity for recycling, but that is the last step. “We must begin with the product design. How can we make them more modular so that they can be repaired or have parts replaced? We need to return to making durable products.”
Deloitte partnered with Circle Economy to produce the 2023 Circularity Gap report, released during the World Economic Forum’s (WEF) annual meeting in Davos. According to the report, the global economy is now only 7.2 percent circular, compared to 9.1 percent in 2018. And the situation is worsening, driven by rising material extraction and use.
Baltic index inches down on weaker capesize rates
The Baltic Exchange’s main sea freight index .BADI snapped a three-session winning streak on Tuesday as lower rates for capesize vessels overshadowed gains in the panamax segment. The overall index, which factors in rates for capesize, panamax and supramax shipping vessels carrying dry bulk commodities, fell 3 points to 1,142. The capesize index .BACI fell 49 points, or 2.7 percent to 1,783, its lowest in more than two weeks. Average daily earnings for capesize vessels .BATCA, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, fell $401 to $14,791. “Some routes moved on the negative side, underlying the overall fragile momentum in the market at this point,” shipbroker said in a weekly note on Monday, referring to the capesize segment