26th May 2010
The market for low sulphur fuel oil (LSFO) has entered a transition phase in preparation for a lowering of the sulphur limit for fuels used in Europe's emission control areas (ECAs).
The ECA sulphur limit falls from 1.50% to 1.00% sulphur when the revised MARPOL Annex VI, the International Maritime Organization (IMO) regulation, enters into force on July 1 this year.
Ship operators and bunker suppliers offering LSFO are currently preparing for that change, and supply options for LSFO with maximum 1.00% sulphur content are growing.
Taking this into account, Bunkerworld now displays LSFO price indications for both 1.50% and 1.00% sulphur intermediate fuel oil (IFO).
Until early May, Bunkerworld price pages only referred to LSFO, defined as IFOs with maximum 1.50% sulphur content.
The timing of demand for 1.00% sulphur fuel depends heavily on ships' trade routes. The earliest 1.00% IFO enquires came from big operators who were heading out of Europe and would only return after July 1, but local operators may use 1.50% sulphur product right up until July 1.
With LSFO pricing on Bunkerworld now specifying the product's sulphur limit, ship operators can get a clearer picture of where they can obtain 1.00% sulphur and 1.50% sulphur product, and the price differences.
Price differences between 1.50% and 1.00% sulphur IFOs at present range from $10 to $20 in North Europe, Bunkerworld data show.
The border to the North European ECAs runs across the English Channel to the south, just south of the UK's Falmouth Bay in the west, and north of Brest in France.
The North Sea ECA encapsulates the entire eastern seaboard of the British isles, and all Norwegian ports south of Mongstad.
After July 1, bunker suppliers at ports inside the ECAs will have no reason to continue selling LSFO above 1.00% sulphur content, but for suppliers in South Europe and the Mediterranean the picture is less clear-cut.
Due to European Union regulations, a market for LSFO with 1.5% sulphur content may still exist in parts of Europe.
According to Directive 2005/33/EC, also known as the EU sulphur directive, a sulphur limit of 1.5% has been in force for "passenger vessels on regular services to or from any port in the Union" since August 11, 2006.
The 1.5% limit in EU waters applies not just to ferries, but can also apply to cruise ships if they have regular sailings between EU ports.
The current poll on Bunkerworld asks if there will be adequate supply of 1.00% sulphur fuel oil for the ECAs in Europe and for the North American ECA from August 2012. To cast your vote, click here to go to the poll or look it up at the bottom of the Bunkerworld home page.
Bunkerworld low sulphur fuel price coverage expanded
Bunkerworld, the leading news and information provider for the global marine fuels market, has expanded its price coverage to take into account growing demand for 1.00% sulphur fuel oil.The market for low sulphur fuel oil (LSFO) has entered a transition phase in preparation for a lowering of the sulphur limit for fuels used in Europe's emission control areas (ECAs).
The ECA sulphur limit falls from 1.50% to 1.00% sulphur when the revised MARPOL Annex VI, the International Maritime Organization (IMO) regulation, enters into force on July 1 this year.
Ship operators and bunker suppliers offering LSFO are currently preparing for that change, and supply options for LSFO with maximum 1.00% sulphur content are growing.
Taking this into account, Bunkerworld now displays LSFO price indications for both 1.50% and 1.00% sulphur intermediate fuel oil (IFO).
Until early May, Bunkerworld price pages only referred to LSFO, defined as IFOs with maximum 1.50% sulphur content.
The timing of demand for 1.00% sulphur fuel depends heavily on ships' trade routes. The earliest 1.00% IFO enquires came from big operators who were heading out of Europe and would only return after July 1, but local operators may use 1.50% sulphur product right up until July 1.
With LSFO pricing on Bunkerworld now specifying the product's sulphur limit, ship operators can get a clearer picture of where they can obtain 1.00% sulphur and 1.50% sulphur product, and the price differences.
Price differences between 1.50% and 1.00% sulphur IFOs at present range from $10 to $20 in North Europe, Bunkerworld data show.
The border to the North European ECAs runs across the English Channel to the south, just south of the UK's Falmouth Bay in the west, and north of Brest in France.
The North Sea ECA encapsulates the entire eastern seaboard of the British isles, and all Norwegian ports south of Mongstad.
After July 1, bunker suppliers at ports inside the ECAs will have no reason to continue selling LSFO above 1.00% sulphur content, but for suppliers in South Europe and the Mediterranean the picture is less clear-cut.
Due to European Union regulations, a market for LSFO with 1.5% sulphur content may still exist in parts of Europe.
According to Directive 2005/33/EC, also known as the EU sulphur directive, a sulphur limit of 1.5% has been in force for "passenger vessels on regular services to or from any port in the Union" since August 11, 2006.
The 1.5% limit in EU waters applies not just to ferries, but can also apply to cruise ships if they have regular sailings between EU ports.
The current poll on Bunkerworld asks if there will be adequate supply of 1.00% sulphur fuel oil for the ECAs in Europe and for the North American ECA from August 2012. To cast your vote, click here to go to the poll or look it up at the bottom of the Bunkerworld home page.