World News
Singapore Traders: ISO 8217:2012 Won't be Adopted for Years
Several Singapore-based traders said Thursday that the new International Organization for Standardization (ISO) specification for marine fuel, 8217:2012, is unlikely to be taken up by the industry for "a few years," according to a report by Platts.
The new standard was published on August 15, 2012, but the report said that the previous ISO 8217:2010 specification it supersedes is still facing problems and is rarely used by the bunker industry.
ISO 8217:2012, the fifth edition of the standard, differs from ISO 8217:2010 only in that it adds test method IP 570 for hydrogen sulfide (H2S), and while an H2S upper limit of 2 mg/kg effective July 1, 2012 was already part of the previous standard, no test method had been specified.
"The industry already adheres to a limit on H2S because it kills people," one Singapore-based trader said.
"Even though it is not included in most contracts, most ships can measure the levels of H2S, and Singapore's terminals already specify a limit on it of 100 ppm using a vapour phase test," they added.
"The market has not even fully moved to [ISO 8217:]2010 as yet so it would take some time before we move to [ISO 8217:]2012," another Singapore-based trader was quoted as saying.
Although Maritime and Port Authority of Singapore (MPA) made ISO 8217:2010 specifications the default standard for bunker contracts effective July 1, 2012, the majority of bunker contracts were said to use the older ISO 8217:2005 specifications.
The reason for the slow take up was attributed to the reported premium for ISO 8217:2010 standard fuel of around $2 to $20 per metric tonne (pmt) compared to that of 8217:2005 fuel.
"Shipowners are suffering, so they do not want to pay any more," a trader said.
As sellers and buyers can agree to omit certain bunker specifications, it was "unlikely that there will be any desire in the near term to adopt the ISO 2012 specifications."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 493.50 | 0.00 | 609.00 | 3.00 |
| Rotterdam | 432.00 | 18.00 | 582.50 | 17.00 |
| Houston | 450.00 | 8.00 | 607.00 | 11.00 |
| Fujairah | 476.50 | 6.50 | 699.00 | 4.00 |
| Global 20 Ports Average | 516.00 | 5.00 | 700.00 | 5.50 |
| Global 4 Ports Average | 463.00 | 8.00 | 624.50 | 7.00 |
| Global Average Bunker Price | 562.00 | 2.00 | 738.00 | 3.50 |
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