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.
Russian diesel oil exports currently show a significant downward trend compared to the volume of flows in the first quarter of this year. In the case of Turkey, one of the main destinations, there is a gradual decline after the previous months exceeded the levels of the previous two years. However, the total volume of Russian diesel for Turkey is still higher than in the previous two years, with the trend moving towards the 2021 level (image above, of the 25-day moving average of the total volume). Within the crude tanker segment, VLCC freight rates have yet to exhibit signs of firmness, except for the Aframax Med route, which has shown a noticeable recovery compared to the previous week. In the clean segment, there have been some promising signs of firmness in the MR2 size. However, the diminishing pace of Russian diesel oil exports poses a potential threat to the solid outlook of clean freight rates.
According to a recent Reuters news report, the oil market encountered a significant downturn on Thursday, with prices plummeting by over $3 at one stage. This decline was triggered by Russian Deputy Prime Minister Alexander Novak's dismissal of the possibility of additional production cuts during the upcoming OPEC+ meeting. Brent crude futures experienced a decline of $2.85, equalling a 3.6% drop, ultimately reaching $75.51 per barrel by 12:08 p.m. EDT (1708 GMT). Similarly, U.S. West Texas Intermediate crude (WTI) saw a decrease of $2.99, or 4%, settling at $71.35 per barrel. Both benchmarks reached session lows, with declines exceeding $3.
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
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.
Russian diesel oil exports currently show a significant downward trend compared to the volume of flows in the first quarter of this year. In the case of Turkey, one of the main destinations, there is a gradual decline after the previous months exceeded the levels of the previous two years. However, the total volume of Russian diesel for Turkey is still higher than in the previous two years, with the trend moving towards the 2021 level (image above, of the 25-day moving average of the total volume). Within the crude tanker segment, VLCC freight rates have yet to exhibit signs of firmness, except for the Aframax Med route, which has shown a noticeable recovery compared to the previous week. In the clean segment, there have been some promising signs of firmness in the MR2 size. However, the diminishing pace of Russian diesel oil exports poses a potential threat to the solid outlook of clean freight rates.
According to a recent Reuters news report, the oil market encountered a significant downturn on Thursday, with prices plummeting by over $3 at one stage. This decline was triggered by Russian Deputy Prime Minister Alexander Novak's dismissal of the possibility of additional production cuts during the upcoming OPEC+ meeting. Brent crude futures experienced a decline of $2.85, equalling a 3.6% drop, ultimately reaching $75.51 per barrel by 12:08 p.m. EDT (1708 GMT). Similarly, U.S. West Texas Intermediate crude (WTI) saw a decrease of $2.99, or 4%, settling at $71.35 per barrel. Both benchmarks reached session lows, with declines exceeding $3.
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
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