World News
Fresh Concern Over Post-2020 HSFO Bunker Quality
Teekay Tankers Ltd. [NYSE:TNK] CEO, Kevin Mackay, has added his voice to those concerned over the quality of HSFO bunkers in the post-2020 market.
Some have seen this summer's "bad bunker" problems as an indicator of quality issues that could emerge with the upcoming 0.50% sulfur fuels expected on the market to meet the new IMO 2020 regulation, and by extension a reason to opt for scrubbers so such fuels can be avoided.
But as other have noted, the problem fuels were traditional HSFOs and not blended products.
"Our concern is that as we move to 2020 and as the market for high sulfur fuels diminishes to that 15% of the ships on the water, the quality of the fuel may come into question and certainly of the availability of it, outside of the major trading and bunkering hubs of Singapore and Rotterdam and places like that," Mackay said during the firm's latest earnings call.
Teekay says it also has concerns over various operational and environmental aspects of scrubbers, which in addition to the quality concerns, has left it lukewarm on using the technology.
"We haven't taken any decisions or any moves to install scrubbers and the quality issues has been one concern around that," said Mackay.
His comments echo those of Euronav CEO, Paddy Rodgers, who earlier this month said he was more concerned with the quality of HSFO than 0.50% sulfur fuels.
* Earnings call transcript provided in part by Seeking Alpha
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.50 | 1.00 | 770.00 | 3.50 |
| Rotterdam | 601.50 | 2.50 | 754.00 | 2.00 |
| Houston | 619.00 | 11.50 | 795.50 | 3.00 |
| Fujairah | 651.50 | 1.00 | 895.00 | 2.00 |
| Global 20 Ports Average | 664.00 | 1.50 | 856.50 | 2.00 |
| Global 4 Ports Average | 630.00 | 3.00 | 803.50 | 2.50 |
| Global Average Bunker Price | 718.00 | 0.50 | 914.50 | 0.50 |
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