World News
IMO2020 Fuel Switch 'Done by December 10': Shipowner
Most ships will have switched over to IMO2020 grade fuel by December 10, a tanker ship operator has said.
President and chief executive of Ardmore Shippng Anthony Gurnee said in a earnings call that although his company's ships, which are spot trading on shorter voyages, will switch to compliant fuel later this month, his understanding is that most ships will have made the switch by mid-month.
"We're hearing the bulk of the switchover is going to happen very end of November, early December, so that by probably December 10, the switchover is more or less complete," Gurnee said in a transcript of the call released by financial website the Motley Fool.
Gurnee surmised that "demand for gasoil is likely to be higher than it's been forecast" on the back of fewer scrubber installations which would mean stronger demand for tanker shipping. In addition, he detected "risk aversion" among ship operators to using very low sulfur fuel oil, at least to begin with.
But since the new VLSFO blends "will be heavily middle distillate in the beginning", his company is looking at "more gasoil demand, more refinery throughput, more oil transport and more trading activity", he said.
Gurnee was discussing his company's third quarter results.
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 |
Popular Now More
-
Apr 24Non-compete clauses have not always been used in a fair and reasonable way in the bunker industry, Maritime Recruitment Company Ltd's Vernon Jayanathan tells Ship & Bunker. -
Apr 25Government investigating after test results altered 'to make the fuel consumption data look better'. -
Apr 26The company is looking for candidates with bunker trading professional certifications and at least six years of experience in a similar role.