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As we enter the New Year the spotlight is on sulfur, fuel cost, and quality. As of January 1 global limits on sulfur were reduced to 3.5% and on August 1st the North America ECA zone becomes active with a 1.0% limit. Fuel costs since 1st quarter of 2011 have pretty much remained above $640 a ton for RMG 380. However a number of refineries are expected to cut production as they shut down for upgrades.
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Ralph E. Lewis considers whether reners can step up their processing capacity to meet the huge increase in demand for low sulphur fuel that will be necessitated by emissions regulations.
To understand potential supply challenges, it is important to understand how low sulphur distillate is produced, what renery production trends have been and world demand for these fuels in recent years’.
Infomarine On-Line Technical Library
| File | Description | File size |
Bunkerspot_Roug_Seas.pdf | Rough seas ahead Ralph E. Lewis considers whether reners can step up their processing capacity to meet the huge increase in demand for low sulphur | 433 Kb |
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DNV Petroleum Services has tested four fuel oil samples delivered off the coast of Benin, Ghana and Ivory Coast, representing HFO delivered between 22 May and 30 May 2011 with density above the ISO 8217:2005/2010 maximum limits.
The tested densities were in the range of 1010.0 to 1015.4 kg/m³ while the density stated on the corresponding Bunker Delivery Notes was 991.0 kg/m³. The bunkers came from one supplier and involved two bunker tankers.
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The purpose of this Marine Notice is to update shipowners and operators on the application of the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 (‘the Bunkers Convention’) in Australia.
This Marine Notice supersedes Marine Notice 9 of 2009 and includes updated information on the application of the Bunkers Convention to oil tankers.
The Bunkers Convention entered into force internationally on 21 November 2008 and the Protection of the Sea (Civil Liability for Bunker Oil Pollution Damage) Act 2008 implements the Convention in Australia.
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The main focus of the presentations were an examination of the current situation in the marketplace, what can we expect as new tighter regulations move closer to enactment, and what lies ahead from a macro economic standpoint. All these dynamics will continue to determine future prices and quality for bunker. Let us first look at the current state of the deep sea fleet. With the now widely adapted practice of slow steaming we have seen a rapid expansion of the active fleet since the recession. According to Lloyd’s 2011 statistics the deep sea fleet is as follows:
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