World News
Analyst: Shipping Industry Must Choose Alternative Fuel
Facing new emissions regulations, the shipping industry needs to decide what kind of alternative fuels to adopt, Adam Ritchie, Shell Trading's general manger of oil market analysis, told the Singapore International Bunkering Conference (SIBCON), according to Platts.
"The longer [shipowners] wait and see, the fewer choices they will have as the time nears," he said.
Ritchie said there is was no "magic bullet" to help answer the question of which alternative to choose, and the industry needs to look at economics and the investment cycle.
Shipowners have choices including scrubbers, liquefied natural gas (LNG) systems, or low sulfur distillates like marine gasoil (MGO).
Ritchie said the industry must pick one alternative and invest in it collectively if it wants to reduce sulfur emissions to 0.5 percent by 2020.
The International Maritime Organisation (IMO) must still choose whether to implement a global 0.5 percent cap in 2020 or 2025, but the European Union has voted to adopt the standard in 2020 in any case.
A study earlier this year found the LNG is more economically effective than scrubbers, but some analysts say scrubbers are bound to move forward as an alternative as well.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 504.50 | 2.50 | 620.00 | 3.00 |
| Rotterdam | 456.00 | 1.50 | 621.50 | 2.00 |
| Houston | 476.00 | 7.00 | 624.00 | 1.00 |
| Fujairah | 496.50 | 2.00 | 713.00 | 2.50 |
| Global 20 Ports Average | 526.50 | 0.50 | 712.00 | 0.50 |
| Global 4 Ports Average | 483.00 | 2.00 | 644.50 | 0.50 |
| Global Average Bunker Price | 570.50 | 1.50 | 751.00 | 1.00 |
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