A DAY in the LIFE OF... the Barge Captain and His Crew Contents
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INDEPENDENT INTELLIGENCE FOR THE GLOBAL BUNKER INDUSTRY www.bunkerspot.com Volume 7 Number 3 June / July 2010 Inside: • Emissions Trading • High Seas Bunkering • Risk Management • Maritime Week Americas • People and Places • News and Events A DAY IN THE LIFE OF... The Barge Captain and his Crew Contents NEWS Bunker Overview 6 Europe 10 Asia Pacific 16 Head Office: Petrospot Limited Americas 20 Petrospot House Somerville Court Africa and Mideast 22 Trinity Way Adderbury Oxfordshire OX17 3SN ENVIRONMENTAL ISSUES England Tel: +44 1295 81 44 55 Lesley Bankes-Hughes assesses the reactions of the shipping industry to the prospect of Fax: +44 1295 81 44 66 a regional or global maritime emissions trading scheme 24 Email: [email protected] Website: www.bunkerspot.com Gijsbert de Jong of Bureau Veritas reviews progress on the use of alternative fuels for marine propulsion 30 Director - Publishing / Editor Ian Taylor Tel: +44 1295 81 44 55 HIGH SEAS BUNKERING Mob: +44 7876 70 45 41 Per Funch-Nielsen looks at how high seas bunkering is fuelling performance Email: [email protected] improvements and reducing costs 32 Managing Director / Publisher Llewellyn Bankes-Hughes Tel: +44 1295 81 44 55 BUNKERSPOT WORLD MAP Mob: +44 7768 57 44 30 Global prices and news at a glance 34 Email: [email protected] Associate Editor BUNKER PEOPLE Lesley Bankes-Hughes Tel: +44 1295 81 44 55 Captain ‘Pete’ Kysar of Buffalo Marine Service Inc. gives a unique insight into the Mob: +44 7815 57 86 43 daily life of a bunker tanker captain 36 Email: [email protected] Nick Browne of GAC lifts the veil on the world of the bunker credit manager 40 Advertising Sales Executive Steve Simpson Kerry Bennett of Shell gives an insight into the hectic daily schedule of a bunker Tel: +44 1295 81 44 55 procurement team 42 Mob: +44 7800 75 52 78 Email: [email protected] TECHNICAL ISSUES Director - Events Luci Llewellyn-Jones Michael Green of Lintec Testing Services looks at the proposed revision of the ISO Tel: +44 1295 81 44 55 8217 fuel quality standard from a fuel purchaser’s perspective 44 Mobile: +44 7775 92 42 24 Email: [email protected] Ricardo plc tells Bunkerspot about its plans to develop next-generation low carbon marine energy systems 48 Events Executive Sinead Harvey Martin Lucas of Kittiwake argues that variable fuel quality is compromising the health Tel: +44 1295 81 44 55 of marine engines 50 Email: [email protected] Capt. Vassilis Papadopoulos of Macoil gives an overview of some of the fuel quality Design & Marketing Manager Alison Jane Cutler issues that shipowners must consider in the current market 52 Tel: +44 1295 81 44 55 Email: [email protected] MARKET OUTLOOK Design & Marketing Executive Stefka Ilieva of Poten & Partners, Inc., looks at future supply and demand prospects for Simon Demaine Tel: +44 1295 81 44 55 the fuel oil market 56 Email: [email protected] Sales Manager RISK MANAGEMENT Luke Hallam Evans Chris Thorpe of HCEnergy considers how proposed US legislation for financial Tel: +44 1295 81 44 55 derivatives could affect fuel hedging 58 Mob: +44 7815 86 73 52 Email: [email protected] BUNKER TERMINALLING Events Sales Executive Osei Mitchell Adrian Tolson of Chemoil argues that terminalling provides a sound footing amid the Tel: +44 1295 81 44 55 volatility of the bunker market 61 Mob: +44 7789 20 20 10 Email: [email protected] EVENTS Events & Subscriptions Sales Executive Elena Melis Llewellyn Bankes-Hughes looks back at the recent Maritime Week Americas conference 63 Tel: +44 1295 81 44 55 Events and training course diary 64 Mob: +44 7975 89 52 03 Email: [email protected] NETWORKING Asia Representative Sarah Morris Bunker people on the move 66 Email: [email protected] Accounts Helen Wilkins Bunkerspot is an integrated news and intelligence service for the international bunker industry. The bi-monthly magazine and 24/7 electronic news Tel: +44 1295 81 44 55 service, www.bunkerspot.com, both provide highly-specific information on all aspects of the marine fuels industry. Bunkerspot Magazine (published Email: [email protected] in February, April, June, August, October and December) annual subscription rate, including unlimited access to the website www.bunkerspot.com, is UK£250/€280/US$400. ISSN 1741-6981. Copyright Petrospot Limited © 2010. All rights reserved. Published by Petrospot Limited, a dynamic independent publishing, training and events organisation, focused on providing information resources for the transportation, energy and maritime industries. Disclaimer: Bunkerspot is an editorially independent magazine and electronic news information service. The information contained in the magazine and website is presented in good faith. Opinions expressed are not necessarily those of Petrospot Limited, which does not guarantee the accuracy of the information contained in Bunkerspot. Nor does Petrospot accept responsibility for errors or omissions or their consequences. No part of Bunkerspot may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photographic, recorded or otherwise, without the prior written permission of the publisher. Visit www.petrospot.com bunkerspot June / July 2010 www.bunkerspot.com 3 Bunker Overview 12 month rolling price charts 380 CST Fuel Oil 600 Houston 380 Singapore 380 500 Fujairah 380 Rotterdam 380 PRICE $/tonne 400 300 JJASONDJFMAM Marine Diesel Oil 800 Houston MDO Singapore MDO 700 Fujairah MDO 600 Rotterdam MDO PRICE $/tonne 500 400 JJASONDJFMAM Welcome to the Brave New World of bunker management Crude oil prices hit a 10-month low in late May are significantly higher than they were this than bunker prices). and, although there was a slight bounce-back, time last year and it is highly unlikely that we And how have the bunker suppliers fared many in the market seemed to think that the will be revisiting the lows of 2008/2009 while commercially over the past few months? combination of swollen US oil inventories and China’s demand for energy products remains One of the biggest independent suppliers, continuing concerns about the health of the voracious and the beginnings of economic Chemoil, posted a Q1 net loss of $13.5 world economy would probably preclude any recovery are in place. million (see page 16). The company said major rebounds. Even though Rotterdam’s 380 cst price that its results were ‘negatively impacted by Bunker prices were also on the slide. In indications dropped a bit over the course of certain one-time charges including a loss from Rotterdam, for example, the delivered price May, they are still soaring above the $300 a the disposal of a delivery vessel and the full of 380 centistoke (cst) fuel oil dropped from tonne levels that we saw at the start of May realisation of employee stock option costs’. a high of almost $480 a tonne at the end of last year. However, Chemoil conceded that it had April to under $420 a tonne over the course of A recovery in the world shipping markets suffered from ‘weak demand’ in some of its May. The other benchmark ports – Singapore, would, of course, help to nudge up bunker markets and it had therefore ‘taken action to Fujairah and Houston – also saw prices drop, prices – and there are signs that some improve profitability and operating efficiencies but at a gentler gradient. companies, at least, have turned the corner. while implementing measures to reduce As is often the case, the trend in marine A.P. Moller-Maersk reported a net profit of costs’. distillates was harder to read. The price of $639 million in the first quarter (Q1) of 2010, World Fuel Services (WFS) reported a marine diesel oil (MDO) in Rotterdam slipped compared with a loss of $373 million for the Q1 gross profit of more than $39 million for the down by around $90 a tonne over the course first three months of 2009 (see page 14). marine segment of its business – which was of May. But there was very little movement The shipping giant said that the improvement a healthy return, even though it was down by in Houston, and distillate prices in Fujairah in its fortunes was mainly due to increasing more than 15% on Q1 2009. actually gained a few dollars. freight rates and higher oil prices (which was Meanwhile, Aegean Marine Petroleum It’s worth noting that oil prices generally presumably a reference to cargo values, rather Network Inc. (AMPNI) saw an impressive 6 www.bunkerspot.com June / July 2010 bunkerspot Bunker Overview 130% jump in its Q1 bunker sales reviews – up Apr-10 May-10 from $361 million in Q1 2009 to almost $840 380 IFO 29-02 05-09 12-16 19-23 26-30 03-07 10-14 17-21 million (see page 14). The increase in bunker prices over the Rotterdam d 450 460 468 470 477 470 456 421 financial period played a big part in boosting Gibraltar d 462 463 486 484 497 486 468 441 AMPNI’s revenue total – but AMPNI also Piraeus d 465 466 483 486 496 485 469 435 managed to push up its sales volumes by Suez d 501 501 508 500 506 511 504 503 nearly a third, from around 1,310,000 metric Fujairah d 466 472 479 484 497 488 480 453 tonnes (mt) to more than 1,720,000 mt. Durban w n/a n/a n/a n/a n/a n/a n/a n/a This was perhaps to be expected, given the manner in which the company has expanded Tokyo d 510 515 519 528 541 555 533 520 its coverage and beefed up its fleet of bunker Busan d 489 501 508 506 520 540 519 497 tankers over the past year.