World News
Intertek: Regulation Changes Lead to Off Spec Bunkers
Changes in regulations that govern marine fuel result in an increase in off-specification bunkers, according to data from fuel testing agency Intertek.
"Its been well documented that changes in legislative requirements have a knock on effect on the quality of the product available. Test data shows a direct correlation between key legislative change and the number of off spec fuels," Steve Bee, Global Business Director, Intertek (Lintec) ShipCare Services told delegates gathered at the recent Connecticut Maritime Association (CMA) Shipping 2014 annual conference.
"The fluctuation in quality of available fuels tends to be witnessed immediately before, during, and immediately after a legislative change."
Bee noted that since 2005 there have been far more frequent changes to the ISO 8217 marine fuel specification as well as a tightening of environmental legislation on an ever widening scale.
As a result, bunker buyers now need to not only focus on good quality fuel, but fuel that meets the appropriate specification for emissions.
At the same time bunker suppliers have had to increase fuel blending to produce fuels that meet the required legislation, leading to an increasing percentage of quality issues.
"In 2006, 18% or 1 in 6 fuel samples were off spec. In 2013 that was 25%, or 1 in 4," said Bee, adding that the data reflected samples of residual fuel bunkers that were off specification but did not necessarily exceed the 95% confidence limit.
According to Intertek's data, bunker quality also got increasingly worse over the course of 2013.
"I think its fair to say from what we've seen in 2013 shows the greatest recorded rise in off specification fuels than any other previous year from the tens of thousands of samples that we've tested."
"Off spec bunkers rose from 19.9 percent in Q1 to 27.1% in Q4. So really from 1 in 5 fuel samples to 1 in 3.7 fuel samples over the course of the year."
The next change to the ISO 8217 specification is due by 2016.
CMA's next event, CMA Shipping 2015, will be held on March 23-25, 2015 at the Hilton Stamford Hotel, Connecticut.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.00 | 0.50 | 775.00 | 3.50 |
| Rotterdam | 603.50 | 1.50 | 759.50 | 11.50 |
| Houston | 626.50 | 2.50 | 794.00 | 2.00 |
| Fujairah | 649.00 | 0.50 | 904.50 | 6.50 |
| Global 20 Ports Average | 664.00 | 2.00 | 855.00 | 0.00 |
| Global 4 Ports Average | 632.00 | 1.00 | 808.00 | 4.00 |
| Global Average Bunker Price | 716.50 | 1.00 | 901.00 | 12.50 |
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