This article examines recent progress and initiatives by the shipping industry to meet new IMO targets and provides Signal Ocean Platform data on emissions developments and trends.
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The growth trajectory of dirty Cross Med Aframax tonne days and rates has shown a notable upward trend since mid-March
As March draws to a close, the crude freight market is witnessing a softening momentum in VLCC MEG-China rates, juxtaposed with continued weekly growth in demand tonne days. Notably, the Aframax cross Mediterranean rates have rebounded, spurred by an accelerated pace of growth in dirty tonne days since mid-March (refer to the image above).
Reflecting on the first quarter of the year, the evolution of VLCC freight rates from MEG and Africa to China has been marked by challenges. Despite a promising spike in MEG-China rates in mid-February, this surge was short-lived, leaving behind a more subdued sentiment. The recent tightness in vessel supply observed in the VLCC Ras Tanura raises anticipation regarding its potential impact on market prices. However, demand in tonne days growth has yet to demonstrate a firmer pace of expansion.
Meanwhile, market discussions suggest that Chinese oil demand growth may pose further tests, as the world's second-largest economy enters a new era of lower growth. Speculations indicate that growth levels could potentially halve compared to pre-COVID 2019 levels, particularly as key segments of the Chinese economy grapple with a slowdown.
For more information on this week's trends or if you wish to subscribe to our FREE weekly market trends email, please contact us: research@thesignalgroup.com
-Republishing is allowed with an active link to the source
Creating a sustainable world requires us to embark on a journey towards a zero emission future, where every step is a commitment to preserve our planet for future generations.
Albert Greenway
Environmental Scientist, Sustainability Expert
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Increased Use of Renewable Energy:
Shipping companies are embracing renewable energy sources to power onboard systems and reduce emissions during port operations. Solar panels and wind turbines are being installed on vessels to generate clean energy, reducing reliance on auxiliary engines, and cutting down emissions. Shore power facilities in ports allow ships to connect to the electrical grid, eliminating the need for onboard generators while docked.
Collaboration and Industry Partnerships:
Recognizing that addressing emissions requires collective action, shipping companies, governments, and organizations have formed partnerships and collaborations. These initiatives focus on research and development, sharing best practices, and promoting knowledge transfer. Joint projects aim to develop and deploy innovative technologies, improve infrastructure, and create a supportive regulatory framework to accelerate the industry's transition towards a greener future. The Zero Emission Shipping - Mission Innovation.
To pave the way for a greener future in shipping, the availability of alternative fuels plays a vital role in their widespread adoption. However, this availability is influenced by factors such as port infrastructure, local regulations, and government policies. As the demand for cleaner fuels in shipping rises and environmental regulations become more stringent, efforts are underway to improve the accessibility of these fuels through infrastructure development, collaborations, and investments in production facilities.
Liquefied Natural Gas (LNG) infrastructure has seen significant growth in recent years, resulting in more LNG bunkering facilities and LNG-powered vessels. Nonetheless, the availability of LNG as a marine fuel can still vary depending on the region. To ensure consistent availability worldwide, there is a need for further development of LNG supply chains and infrastructure. For biofuels, their availability hinges on production capacity and the availability of feedstock. Although biofuels are being produced and utilized in various sectors, their availability as a marine fuel remains limited. Scaling up biofuel production and establishing robust supply chains are imperative to ensure wider availability within the shipping industry.Hydrogen, as a fuel for maritime applications, is still in the early stages of infrastructure development. While some hydrogen vessels have been tested or introduced in the first quarter of last year, the infrastructure required for hydrogen production and distribution needs further advancement.
Ammonia, as a marine fuel, currently faces limitations in availability. The production, storage, and handling infrastructure for ammonia need further development to support its widespread use in the shipping industry.Methanol, on the other hand, is already a commercially available fuel and has been used as a blend with conventional fuels in some ships. However, its availability as a standalone marine fuel can still be limited in certain regions. Bureau Veritas in October 2022 published a White Paper for the Alternative Fuels Outlook. This white paper provides a comprehensive overview of alternative fuels for the shipping industry, taking into account key factors such as technological maturity, availability, safety, emissions, and regulations.
Creating a sustainable world requires us to embark on a journey towards a zero emission future, where every step is a commitment to preserve our planet for future generations.
Albert Greenway
Environmental Scientist, Sustainability Expert
Increased Use of Renewable Energy:
Shipping companies are embracing renewable energy sources to power onboard systems and reduce emissions during port operations. Solar panels and wind turbines are being installed on vessels to generate clean energy, reducing reliance on auxiliary engines, and cutting down emissions. Shore power facilities in ports allow ships to connect to the electrical grid, eliminating the need for onboard generators while docked.
Collaboration and Industry Partnerships:
Recognizing that addressing emissions requires collective action, shipping companies, governments, and organizations have formed partnerships and collaborations. These initiatives focus on research and development, sharing best practices, and promoting knowledge transfer. Joint projects aim to develop and deploy innovative technologies, improve infrastructure, and create a supportive regulatory framework to accelerate the industry's transition towards a greener future. The Zero Emission Shipping - Mission Innovation.
To pave the way for a greener future in shipping, the availability of alternative fuels plays a vital role in their widespread adoption. However, this availability is influenced by factors such as port infrastructure, local regulations, and government policies. As the demand for cleaner fuels in shipping rises and environmental regulations become more stringent, efforts are underway to improve the accessibility of these fuels through infrastructure development, collaborations, and investments in production facilities.
Liquefied Natural Gas (LNG) infrastructure has seen significant growth in recent years, resulting in more LNG bunkering facilities and LNG-powered vessels. Nonetheless, the availability of LNG as a marine fuel can still vary depending on the region. To ensure consistent availability worldwide, there is a need for further development of LNG supply chains and infrastructure. For biofuels, their availability hinges on production capacity and the availability of feedstock. Although biofuels are being produced and utilized in various sectors, their availability as a marine fuel remains limited. Scaling up biofuel production and establishing robust supply chains are imperative to ensure wider availability within the shipping industry.Hydrogen, as a fuel for maritime applications, is still in the early stages of infrastructure development. While some hydrogen vessels have been tested or introduced in the first quarter of last year, the infrastructure required for hydrogen production and distribution needs further advancement.
Ammonia, as a marine fuel, currently faces limitations in availability. The production, storage, and handling infrastructure for ammonia need further development to support its widespread use in the shipping industry.Methanol, on the other hand, is already a commercially available fuel and has been used as a blend with conventional fuels in some ships. However, its availability as a standalone marine fuel can still be limited in certain regions. Bureau Veritas in October 2022 published a White Paper for the Alternative Fuels Outlook. This white paper provides a comprehensive overview of alternative fuels for the shipping industry, taking into account key factors such as technological maturity, availability, safety, emissions, and regulations.
The growth trajectory of dirty Cross Med Aframax tonne days and rates has shown a notable upward trend since mid-March
Posted by
Maria Bertzeletou
|
March 28, 2024
The growth trajectory of dirty Cross Med Aframax tonne days and rates has shown a notable upward trend since mid-March
As March draws to a close, the crude freight market is witnessing a softening momentum in VLCC MEG-China rates, juxtaposed with continued weekly growth in demand tonne days. Notably, the Aframax cross Mediterranean rates have rebounded, spurred by an accelerated pace of growth in dirty tonne days since mid-March (refer to the image above).
Reflecting on the first quarter of the year, the evolution of VLCC freight rates from MEG and Africa to China has been marked by challenges. Despite a promising spike in MEG-China rates in mid-February, this surge was short-lived, leaving behind a more subdued sentiment. The recent tightness in vessel supply observed in the VLCC Ras Tanura raises anticipation regarding its potential impact on market prices. However, demand in tonne days growth has yet to demonstrate a firmer pace of expansion.
Meanwhile, market discussions suggest that Chinese oil demand growth may pose further tests, as the world's second-largest economy enters a new era of lower growth. Speculations indicate that growth levels could potentially halve compared to pre-COVID 2019 levels, particularly as key segments of the Chinese economy grapple with a slowdown.
For more information on this week's trends or if you wish to subscribe to our FREE weekly market trends email, please contact us: research@thesignalgroup.com
-Republishing is allowed with an active link to the source
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