Is there a future for bunkers?

Is there a future for bunkers?

Part I

More than 90% of raw and finished goods are trading on the world by maritime transportation due the comparatively low price when compared to another modal, and 75% of the worldwide fleet works with slow speed diesel turbocharged engines directly coupled at propellers, bearing in mind as the propeller efficiency is inversely proportional to the rotating speed. The used fuel at these engines are the results of a blend of a residual fuel and a diluent (cutter stock). Thus, the key of state of art are the conceptual simplicity of the vessels propulsion design associated with a relatively low fuel price.

While the road mode transportation demands 1.2 MJ/ton.km and rail 0.6 MJ/ton.km for instance, marine trading demands 0.12 MJ/ton.km., in addition, the high reliability of ship operations depends intrinsically of fuel and lubricants qualities.

The fuel has the quality assurance by rigorous analysis, supply by supply, while lubricants are on line products of renowned and recognized lubricants makers. The standard norm of bunker quality is the ISO 8217 which establish the bunkers contaminants levels when the fuel is supplied.

On average, the bunker sulphur content is from 2.5 to 2.7% today, despite the ISO 8217 set 3.5% of limit. However, under Marpol Anex VI, the IMO (International Maritime Organization) will cut the global sulphur cap from 3,5% to 0.5% on January of 2020.

This limited regulation will drive an enormous impact over refineries and maritime operations, once to produce 0.5% sulphur bunker from HFO on compliance with regulations is costly, and it only make sense when bunkers’ fuel prices are at a certain level to cover the refineries investments due to:

1.      Crude oil quality variability,

2.      Refinery process, and

3.      Diverse streams sources for blend.

On other hand, it isn’t clear in case owners and operators would:

1.      continue to use high heavy fuel oil and install exhaust scrubbers (caustic soda),

2.      switch to low sulphur bunker fuel (LSF) or

3.      switch to liquid natural gas (LNG).

But independent of maritime market behavior the analysis of fuel at moment of custody transfer will be more and more severe and necessary.

Let’s study the detail in the part II of this article.

 

 


Silvio Taboas

C-level EXECUTIVE - Brazil and Europe (available talent as a service)

7 年

When Global warming histeria cools, some poor informed jounalists died, environmentalists get real, Asia and Africa population stabilizes, then the scenario of maritime propulsion will be completely different for long routes. No longer diesel propusion but something much more efficient, cleaner and already in use for heavy long routs. Bye ??

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