World News
Jorgensen: Bunker Quality Issue "Frightens Me"
Jens Maul Jorgensen, Director for fuel and risk management at the Lübeck shipping company Oldendorff Carriers and Vice Chairman of the International Bunker Industry Association (IBIA), warns that bunker quality has declined over the past year, industry news site Maritime Propulsion reports.
Oldendorff Carriers has found that negative checked fuel probes rose from 21 percent to 23 percent over the year.
The situation "frightens me," Jorgensen said, adding that bunker quality is likely to continue to decline, in part because more blending to create low-sulfur fuel tends to increase the levels of cat fines in the final product.
High levels of the aluminum and silicon compounds can be very damaging to engines.
In addition, Jorgensen said, suppliers under pricing pressure from strained shipping companies could cut corners.
Vessel damage due to cat fines have risen from one case in 2001 to nine in 2013 as of November, according to IHS Fairplay.
After the U.S. introduced new rules on the sulfur content of bunkers in 2012, the level of cat fines in fuel sold there rose, DNV Petroleum Services said at the time.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 570.50 | 0.00 | 715.50 | 13.50 |
| Rotterdam | 532.00 | 4.50 | 739.00 | 3.00 |
| Houston | 546.50 | 8.50 | 740.00 | 27.00 |
| Fujairah | 560.00 | 1.00 | 777.00 | 10.00 |
| Global 20 Ports Average | 588.00 | 1.00 | 805.00 | 13.00 |
| Global 4 Ports Average | 552.00 | 1.00 | 743.00 | 13.00 |
| Global Average Bunker Price | 619.00 | 2.50 | 835.50 | 3.00 |
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