World News
New Risks Seen from LNG Bunkers
Insurer Allianz Global Corporate & Specialty SE (Allianz) says increasing use of liquefied natural gas (LNG) bunkers poses new risks.
Allianz said use of the fuel is expected to rise "dramatically" by 2020, and new ports without experience handling it will have to adapt to its use.
"We need to ask what risks LNG-fueled ships will present to the industry," said Capt. Rahul Khanna, senior risk consultant, for the firm's marine division.
"The concern is storing the LNG as fuel and handling it onboard.
"LNG expertise is not easily available – there needs to be a change in mindset and training,"
Allianz said the addition of container vessels of 18,000 twenty-foot equivalent (TEU) or larger to the market also creates new risks.
The claims arising out of maritime emergencies of these 'mega ships' can be huge," said Sven Gerhard, global product leader for Hull & Marine Liabilities.
"For example, just think of the business interruption of ports and terminals if an accident was to block the entrance."
Another potential issue comes from increased use of Arctic waters for shipping, which brought the average shipping casualties in the Arctic Circle from 7 between 2002 and 2007 to 45 between 2009 and 2013.
Overall, however, Allianz said shipping losses are on the decline, with 94 losses of more than 100 gross tonnes reported in 2013, a 20 percent drop from the previous year.
Over the past year, a number of organisations have issued guidelines on safety measures for LNG bunkering.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 625.00 | 9.00 | 732.00 | 15.00 |
| Rotterdam | 577.50 | 3.50 | 739.50 | 1.00 |
| Houston | 595.00 | 0.50 | 767.00 | 4.50 |
| Fujairah | 628.50 | 4.00 | 878.50 | 11.00 |
| Global 20 Ports Average | 645.50 | 0.50 | 827.00 | 5.00 |
| Global 4 Ports Average | 606.50 | 0.50 | 779.50 | 0.50 |
| Global Average Bunker Price | 703.50 | 4.00 | 886.00 | 6.00 |
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