OW Bunkers Investors in Legal Action Against IPO Banks
A group of 24 Danish institutional investors in OW Bunker has decided to issue a writ against Carnegie and Morgan Stanley, accusing them of misleading investors ahead of the 2014 listing of the now bankrupt marine fuel oil supplier. The investors, which include two of the largest pension funds in Denmark, ATP and PFA, claim they have suffered a loss of 767 million crowns ($123 million) following investment in OW Bunker shares "on the basis of a prospectus which was insufficient in material aspects". Morgan Stanley declined to comment, while Carnegie said it did not know the details of the alleged claim. Reporting by Stine Jacobsen
Cleaner Maritime Air for North America Comes Soon
On the operative day the sulfur content of the fuel oil used on board ships operating within the ECA may not exceed 1.00 percent m/m (10,000 ppm). The boundaries of the North American ECA are defined in IMO MEPC.1/Circ.723 . The US EPA has issued Interim Guidance on the Non-Availability of Compliant Fuel Oil for the North American ECA and more information is also available on the US EPA website.
USCG Marine Safety Alert
The U.S. Coast Guard issued a marine safety alert today to remind vessel owners and operators to establish effective fuel oil changeover procedures during efforts to comply with MARPOL Annex VI emission regulations. The USCG said that several recent incidents of fuel leakages during changeovers prompted the alert. The USCG cited multiple unspecified incidents involving substantial machinery space fuel leakages that occurred while vessels were switching fuel oil to ultra low sulfur (ULS) fuel oil to ensure compliance with MARPOL Annex VI, Regulation 14.3.4. The new regulations, which came into effect on January 1, lowered maximum fuel sulfur content from 1.0% to .10%.
Mercuria, PetroChina Selling Offshore Stored Fuel Oil
Three to four tankers storing fuel oil, down from eight or nine. Independent trading house Mercuria and Chinese state oil giant PetroChina are selling fuel oil stored in vessels off Singapore and southern Malaysia on strong demand from the shipping and power sector, several trade sources said on Friday. The number of vessels storing fuel oil has halved from a month ago as Mercuria and PetroChina may have resold cargoes purchased over March to May, the sources said. Geneva-based…
Heavy Fuel Oil Test Plan
The Environmental Protection Agency (EPA) posted on the Internet its Heavy Fuel Oil Test Plan and Robust Summary. As noted in this lengthy document, heavy fuel oil is a principal fuel in marine applications. It is a diverse group of substances encompassing hydrocarbons with a wide range of molecular weights. Existing aquatic toxicity data show heavy fuel oil related refinery streams to have moderate to no aquatic toxicity depending upon species and test substance. (HK Law).
USCG Alert: Compliance with MARPOL Requirements
The Coast Guard has confirmed several reports it has received stating that main engines may not attain the expected speed when using ultra low sulfur fuel oil. The Coast Guard has revised its list of recommendations to vessel owners and operators about the importance of establishing effective fuel oil changeover procedures to comply with MARPOL Annex VI emission regulations. Ensure fuel oil switching is accomplished outside of busy traffic lanes and the ECA. Generally the ECA is 200 nm from the North American Coast and 50 miles from the U.S. Caribbean coast (e.g., the Commonwealth of Puerto Rico and the U.S. Anticipate that there may be many technical challenges for operators when beginning to use ULS fuel oil as a matter of routine and compliance.
Petroperu Seeks to Sell Fuel Oil Cargo
State-run Petroperu is offering to sell a 220,000 barrel cargo of fuel oil for delivery at Talara port on September 6 to 10, according to a tender document seen by Reuters on Tuesday. The oil company in July sold a similar cargo of fuel oil that will be loaded this week. It has also been actively buying crude and fuel cargoes on the open market in recent months. For this tender, the company is offering to deliver fuel oil with maximum 1.4 percent sulfur or heavy fuel oil with up to 1.5 percent sulfur. The product must be exported from Peru.
Singapore's Record Fuel Stocks Move to Floating Storage
Record high stocks of fuel oil in Singapore are pushing traders to store the shipping and feedstock fuel into tankers temporarily as demand slows regionally. At least seven very large crude carriers (VLCCs) have been provisionally fixed to store fuel oil on short-term time charters, traders and shipbrokers said. Lower oil prices have boosted refinery profits over most of this year, in turn driving refiners to maximise run rates and increase the supply of fuel oil in the region, traders said. Traders are also taking advantage of cheaper freight rates and a steep contango where prices of cargoes loading in the current month are cheaper than those loading in forward months.
Iranian Fuel Oil Exports Trade Skirts Sanctions
Iran is sidestepping Western sanctions and managing to sell hundreds of thousands of tonnes of fuel oil every month through companies based in the U.S.-allied United Arab Emirates, trading sources told Reuters. The U.S. and EU sanctions that came into force in 2012 prohibit the import, purchase and transport of Iranian petroleum products to pressure Tehran to halt its disputed nuclear programme. Washington has also pressed its allies around the world to clamp down on the shipping of Iranian oil products. But Tehran has been using innovative methods to circumvent the restrictions, several Middle East-based trading sources said. They include tankers switching off their tracking systems…
North P&I Publishes 3rd Edition Of Bunker Claims Prevention Guide
The ‘A’ rated, 150 million GT North of England P&I club has published a third edition of its popular loss-prevention guide ‘Bunker Claims Prevention’, which aims to help shipowners avoid potentially large losses arising from loading unsuitable or insufficient marine fuel oil. The new edition reflects recent changes to international marine fuel specifications introduced in ISO 8217:2010. Head of loss prevention Tony Baker says, ‘The guide tackles bunker quality and quantity issues…
Eastern Shipbuilding Group Launches ATB
Eastern Shipbuilding Group, Inc. was scheduled to launch an ABS Classed 150 x 46 x 27-ft. ATB Ocean Going Tug at its Allanton facility in on February 15. is being constructed for U.S. Shipping Partners, L.P. of along with two sister ships. is the first of three ABS-Classed 150-ft. ATB tugs currently under construction at Eastern’s Allanton facility. The vessel is designed and engineered by Guarino & Cox of , and is classed under the ABS rules for Building and Classing Steel Vessels Under 295 ft. in length. This series of 150-ft. ATB tugs offers several unique design features including an articulated tug and barge (ATB) connection system provided by Intercon. The vessel is capable of being powered by both heavy fuel oil as well as # 2 marine diesel fuel oil.
China to Implement Emission Control Measures
The Chinese Ministry of Transport has announced that from April 1, 2016, vessels ‘at berth’ at the core ports in the Yangtze River Delta (YRD) emission control area (ECA) must use fuel oil containing 0.5 percent sulphur or less. These core ports are Shanghai, Ningbo-Zhoushan, Suzhou and Nantong. Ships entering the ECA are encouraged to use fuel oil containing 0.5 percent sulphur or less. Ships ‘at berth’ at ports in the ECA must use fuel oil containing 0.1 percent sulphur or less. The exact details of how the measures will be implemented (i.e., enforcement, penalties, the definition of ‘at berth’, and requirements for fuel change-over, verification of fuel quality, records and documentation) are not yet available.
Tighter Supertanker Market Impacts Asian Fuel Supplies
The window to sell Western fuel oil to Asia is starting to close as demand for a limited fleet of supertankers to store cheap crude pushes freight rates to multi-month highs, shipping and trade sources said. Crude prices have fallen nearly 60 percent since June and, with prices a year ahead already quoted about $10 a barrel dearer than now, crude traders have hired up to 20 supertankers to store oil with a view to turning a big profit later. That also adds to the cost of selling fuel oil to Asia. The region has taken in high volumes of fuel oil from Europe and the Mediterranean this month, but with the cost of chartering a supertanker rising to highs not seen in at least a year, it is an increasingly less profitable trade.
Low Sulfer Fuel Demand Set to Rise
New international rules – set to enter force in May 2005 – which require ships to burn fuel oil with a maximum sulfur content of 4.5 percent by May next year, and down to 1.5 a year later in certain world regions, will significantly boost the demand for low sulfur fuels, according to wire reports. The measures are set to increase shippers' demand for low sulfur fuel oil, while supplies may be insufficient to meet the anticipated pick-up in buying interest. Front month forward paper prices for fuel oil with a low 1.5 percent sulfur content were at about $168.50 a ton on Tuesday, just $2 above 3.5 percent high sulfur fuel oil prices. The premium widens to $7 a ton for fourth-quarter paper, and to $10 by the third quarter of 2005.
Irma forces Bahamas Borco Terminal to Close
Buckeye Partners LP's Bahamas terminal, also known as Borco, has been closed for vessel traffic and will shut all operations by the end of the day due to Hurricane Irma, a source familiar with operations said on Thursday. That terminal, located in Freeport, on Grand Bahama Island, has more than 26 million barrels of storage capacity for crude, fuel oil, gasoline and other products. Hurricane Irma has already killed several people after hammering the Caribbean as a category 5 storm, with winds up to 180 mph (285 km/h). It was most recently located off the northern coast of Dominican Republic, about 760 miles (1220 km) southeast of Freeport, according to the National Weather Service. Reporting By Jessica Resnick Ault
Dutch Police Investigate Illegal Bunker Fuel Blending
"During three days, we checked whether 30 vessels had the correct documentation. In 12 cases, documents were forged, or the environmental law was violated," Hans Tuinder, head of the Criminal Investigation department for the Marine Police, told Xinhua. Over 22,000 vessels are bunkered in the Netherlands annually, taking in around 13 million tonnes of fuel in total. The port of Rotterdam is a major trading location, the source of around 88 percent of all bunker fuel. A study conducted by the scientific institute CE Delft last year showed some ocean-going vessels were bunkered by fuel oil contaminated with hazardous waste materials. Fuel oil "naturally" contains a variety of hazardous substances in high concentrations.
Fuel Tanker Sinks off Piraeus
Product tanker Agia Zoni II reported water ingress, sinking, in the early hours of Sunday in Saronikos Gulf, south of Athens at anchorage west of Piraeus, with some 2500 tons of fuel on board, and two crew. The local media reports that Aghia Zoni II took on water while it was anchored and sank at 2.45 a.m., after sailing from the Aspropyrgos distilleries in the early hours of Saturday carrying 2,200 metric tons of fuel oil and 370 metric tons of marine gas oil. It is not yet known what caused the sinking.
Record Trading in Singapore's Bunkers Market
Over $750 million worth of fuel oil traded 1st week of June. Trading frenzy leads to record price swing. Major commodity houses are betting against each other on the direction of fuel oil in Singapore, the world's largest market for shipping fuel, in a clash that has led to a record price swing and is set to smash monthly trading levels. More than $750 million of physical cargoes have been traded in the first week of June during an end-of-day pricing window, accounting for about 60 percent of Singapore's average monthly sales of the fuel and creating logistics challenges at the port.
Hurtigruten Signs on to Ban HFO in the Arctic
Expedition cruise ship operator Hurtigruten has joined international environmental organizations in efforts aiming to spearhead the protection of Arctic communities and ecosystems from risks posed by the use of marine heavy fuel oil (HFO) to power ships. At the Arctic Frontiers conference in Tromsø, Norway, Hurtigruten CEO Daniel Skjeldam signed the Arctic Commitment along with Dr. Sian Prior of the Clean Arctic Alliance, lead advisor to the Clean Arctic Alliance, an international coalition of environmental organizations campaigning for a ban on heavy fuel oil use in the Arctic.
Marine Safety Alert: Propulsion Loss, Fuel Switching
Ships switch fuel oil from residual fuels to distillate fuels in order to reduce emissions. The Coast Guard expects ships will switch fuel more frequently to comply with new emission reduction regulations. When switching fuel oil, some ships have experienced propulsion losses linked to procedural errors or fuel oil incompatibility. API developed a paper titled “Technical Considerations of Fuel Switching Practices” that discusses problems that lead to propulsion loss while switching fuel. It is available at http://marineinvestigations.us. This document may be useful to vessel owners, operators, and engineers interested in preventing fuel system failures and propulsion casualties while meeting current and future exhaust emission control requirements.
Total Charters in New Barge Capacity in Germany
Total Marine Fuels in Germany has chartered in additional barge capacity to meet growing demand for fuel oil from customers in Hamburg and along the Kiel Canal. Total is the main bunker supplier in the Kiel Canal, and is currently selling in excess of 350,000 metric tons of fuel per year in the region. It has had the double-hulled, 1,450-ton capacity bunker barge Elbingerode on charter since the beginning of 2007. Now, in response to continuing increases in demand, it has supplemented that with the charter of the Spandau DT61, which has capacity for about 1,100 tons of heavy fuel oil and 100 tons of gasoil. TOTAL has a Kiel Canal bunker installation from whose four jetties it can supply all grades of heavy fuel oil…
UK Fines Ship Operator for Oil Pollution
The operator of a U.K.-registered containership has been ordered to pay £17,311.01 for breaching oil pollution legislation. The Ever Sigma – operated by Evergreen Marine – was en route from Greece to the Netherlands when 700 liters of heavy fuel oil went overboard. The incident occurred when the chief engineer decided to carry out an internal transfer of heavy fuel oil using two pumps. The heavy fuel oil was not pre-heated prior to the transfer – and the vessel’s master was not informed. A precautionary alarm sounded when the tank reached 336 metric tons (69% full). However, the use of two pumps continued for another hour when the transfer was stopped when the fuel level reached 417 metric tons (85% full).
ClassNK Launches Bunker Fuel Oil Analysis Service
ClassNK’s subsidiary ClassNK Consulting Service (NKCS) has officially launched its Bunker Fuel Oil Analysis Service. The service will provide an oil analysis report for the properties of bunker fuel oil based on the ISO8217 Standard with advice such as oil heating and purification. Testing laboratories are located worldwide in Singapore, UAE, U.K. and U.S. After sampled oil is received at the nearest laboratory from each ship, an analysis report will be provided by email and online within 48 hours. In addition to analysis based on the ISO8217 Standard, the Bunker Fuel Oil Analysis Service also provides special analysis services based on request…