Argus Freight

Daily international freight rates and market commentary

Issue 18-20 | Monday 29 January 2018

DIRTY TANKERS PRICES

Mideast VLCC rates resume slow decline Dirty freight rates

Mideast Gulf VLCC rates fell further on Monday, although the Size Daily
Route ± $/t
’000t Worldscale
pace of decline remained modest.
The VLCC market was relatively cautious at the start Middle East and Asia-Pacific
of the week, with many participants said to be waiting Mideast Gulf-East (double hull) 270 43 -0.5 7.18
for Unipec to cover its 13-15 February, Mideast Gulf-China
Mideast Gulf-UKC/Med 280 19 -0.5 3.60
shipment. The Chinese charterer also took another slew of
VLCCs under contract of affreightment (COA) agreements Mideast Gulf-US Gulf 280 18.5 -0.5 5.20
for mid-February loading dates. But there was still plenty
Mideast Gulf-East - fuel oil 80 90 nc 9.68
of tonnage available and only muted chartering interest,
and that combination continued to pressure shipowners and SE Asia-EC Australia 80 92.5 -2.5 12.65

freight rates. Red Sea-China 80 107.5 nc 19.96

Day Harvest was also active in the sector, booking an
Indonesia-Japan 80 85 +2.5 9.21
older tanker — the 2002-built New Inspiration — for its 14-16
February shipment to China at a discounted rate of just Kozmino-Yosu* 100 345,000 nc -
WS38.55, which was likely WS46 on a 2017 flat rate basis.
Kozmino-north China* 100 430,000 nc -
Discounted bookings have consistently helped undermine the
wider freight market, even weighing on rates for modern, Kozmino-Chiba* 100 430,000 nc -

well-approved vessels. And the Mideast Gulf-east Asia assess- Kozmino-Singapore* 100 450,000 nc -
ment slipped by another WS0.5 to close at WS43.
Northern Europe
Westbound freight also declined, with the Mideast Gulf-
North Sea-northeast Asia* 270 4,350,000 +100000 -
US Gulf assessment slipping by WS0.5 to close at WS18.5, in
line with PBF chartering the Sea Ruby for a Basrah-US Gulf UKC-US Gulf 260 55 nc 8.87
voyage via the Cape route at WS18, with loading from 20
Cross UKC 135 80 nc 5.27
February.
By contrast the North Sea-east Asia lumpsum assessment UKC-US Gulf 135 42.5 nc 6.86

ticked higher again, gaining $100,000 to reach $4.35mn, Cross UKC 80 100 -2.5 6.21
where ST booked the Seaking for a Hound Point-east Asia
UKC-US Atlantic coast 80 82.5 -2.5 10.24
shipment with 20-22 February loading.
Primorsk-UKC 100 85 -2.5 6.89
West Africa-India rates weaken further UKC-US Gulf fuel oil 55 105 nc 16.74
Chartering rates from west Africa to India weakened on Mon-
Baltic-UKC fuel oil 30 180 nc 14.67
day due to a lack of enquiries from Indian charterers. There
was also a surplus of older and discounted vessels available Baltic-Med fuel oil 30 165 nc 21.96
for February-loading dates, which continued to weigh on the West Africa
freight market.
West Africa-US Gulf 260 55.5 -0.5 9.01

West Africa-China 260 45.5 -0.5 11.89

CONTENTS West Africa-W coast India* 260 2,350,000 -50,000 -

Tankers 1-5 West Africa-India* 130 1,450,000 -100,000 -

Dry Bulk 6 West Africa-US Gulf 130 47.5 nc 7.71

News 6-11
West Africa-UKC/Med 130 52.5 nc 6.66

*$ lumpsum

Copyright © 2018 Argus Media group

 Argus Freight Issue 18-20 | Monday 29 January 2018

In the VLCC market, Reliance replaced the Landbridge Dirty freight rates
Majesty with a Maran VLCC at an undisclosed rate to move Size Daily
Route ± $/t
’000t Worldscale
crude from the Agbami and Akpo terminals in Nigeria to
Sikka, India. The VLCC is scheduled to load the Nigerian Black Sea and Mediterranean

crude from 14 February. The west Africa to west coast India Novorossiysk-Med 140 60 nc 4.78

route was assessed $50,000 lower at $2.35mn. Black Sea-Med 135 62.5 nc 4.86
Chartering rates also declined in the corresponding Cross Med 135 60 nc 3.16
Suezmax market, where the lumpsum slipped by $100,000 Med/Black Sea-US Gulf 135 47.5 -2.5 7.88
to $1.45mn. Suezmax demand was sluggish, as VLCC stems Med/Black Sea-East* 135 1,800,000 -300,000 13.33
dominated the February-loading cargoes and Indian refiners Cross Med 80 107.5 -2.5 6.40
were less active in their purchasing of west African grades.
Black Sea-Med 80 110 nc 8.56
Med/Black Sea-US Gulf 80 100 nc 17.03
European Suezmaxes remain steady
Med-US Gulf fuel oil 55 102.5 nc 18.11
The Black Sea and Mediterranean Suezmax freight markets
Cross Med fuel oil 30 165 nc 8.83
opened the week steady. Rates stabilised following several
bookings of Suezmax vessels for Aframax cargoes in the Black Sea-Med fuel oil 30 175 nc 13.79

region, which combined with the available Suezmax-sized Americas

shipments to prevent the market softening further. Caribbean-Singapore* 270 3,600,000 nc 13.33
The Black Sea to Mediterranean Suezmax assessment Caribbean-China* 270 4,600,000 nc 17.04
was flat at WS62.5. Trafigura chartered the Genmar Maniate USGC-China* 270 4,400,000 nc 16.30
from Novorossiysk at WS60 for a 140,000t cargo with loading Caribbean-WC India* 270 3,100,000 nc 11.48
due on 16-17 February. ExxonMobil reportedly had a cargo Brazil-China 260 44 nc 13.14
remaining from Ceyhan to the UK continent/Mediterranean
USGC/Caribs-Singapore* 130 2,200,000 nc 16.92
for the beginning of February and Total was also looking for
USGC-China* 130 2,800,000 +75,000 21.54
coverage from Algeria to Europe from 10 February. The cost
Caribbean-USGC 130 70 nc 4.84
of a typical cross-Mediterranean cargo was flat at WS60.
Caribbean-UK continent 150 45 nc 5.96
West African Suezmax markets were steady as fresh
enquiry was light. Irving was reportedly looking to work a Caribbean-Panama 130 80 nc 2.88

cargo from Ceyhan to east coast Canada for mid-February Caribbean-US Gulf 70 90 nc 6.58

but other opportunities for shipowners were limited. The USGC-east coast Canada 70 72.5 nc 8.63
cost of freight from west Africa to the UK continent/Mediter- East coast Mexico-USGC 70 92.5 nc 3.96
ranean was flat at WS52.5, and remained unchanged to the Caribbean-UK continent 70 70 nc 9.30
US Gulf at WS47.5. Caribbean-US Gulf 50 105 nc 7.68
Ecuador-USWC 50 142.5 -5 13.85
East of Suez Aframax rates mixed East coast Mexico - USGC 50 105 nc 4.06
The east of Suez Aframax market was mixed on Monday, as
*$ lumpsum
a growing capacity surplus and sluggish demand affected
certain routes. But there were several replacement fixtures
Turkish straits delays and demurrage
that supported rates in north Asia.
Route units ±
The cost to move an 80,000t heated fuel oil cargo from
the Mideast Gulf to east Asia remained steady at WS90. But Delay at Turkish straits NB days 4 nc
charterers still had the option to book older tankers for their Delay at Turkish straits SB days 3 nc
voyage requirements. Shell took the 1996-built Eagle Beau- Black Sea-Med Suezmax demurrage $/day 25,000 nc
mont at an undisclosed rate to move heated fuel oil from Black Sea-Med Aframax demurrage $/day 20,000 nc
Jubail, Saudi Arabia to east Asia over prompt 30 January to
2 February loading dates. The fixture also had an option to
deliver the cargo to Fujairah, UAE. the Pacific Merchant with a Teekay tanker at $390,000 to
In southeast Asia, the Indonesia to Japan chartering rate move fuel oil for prompt 28-30 January dates.
increased by WS2.5 to WS85. At this rate Vitol replaced the But the freight rate from southeast Asia to east coast
Moscow with DHT Sophie to move fuel oil from Singapore to Australia declined by WS2.5 to WS92.5. Vitol replaced the
South Korea, with prompt loading on 30 January. On a short- Afra Hawthorn with a Teekay tanker to move crude from
er route from Singapore to south China, Sinopec replaced Kimanis, Malaysia to Geelong, Australia over 4 February

Copyright © 2018 Argus Media group Page 2 of 11

Issue Ref: 107808

Argus Freight Issue 18-20 | Monday 29 January 2018

Clean freight rates Clean freight rates - Americas

Daily Size
Size Rate ± $/t
Route World- ± $/t ’000t
’000t
scale
Worldscale
Black Sea and Mediterranean Caribbean-USAC 38 125 nc 10.05
Med-Japan* 80 2,000,000 -100000 - USAC-UKC 38 75 -2.5 9.28
Med-Japan* 60 1,950,000 nc - USGC/Caribbean-UKCM 38 85 -2.5 11.28
Cross Med 30 180 nc 10.13 USGC-Argentina/Brazil 38 125 nc 19.94
Black Sea-Med 30 190 nc 16.44 USGC-east coast Canada 38 120 nc 13.37
Med-UKC 30 190 nc 18.92 Lump sum
Med-US Atlantic coast 37 165 +5 21.96 EC Canada – USAC 38 300,000 -50,000 7.89
Med naphtha premium 30 0 nc - USGC-Chile (not south of Coronel) 38 975,000 -25,000 25.66
Med gasoline premium 30 0 nc - Quintero diff 38 -50,000 nc -1.32
Med jet premium 30 0 nc - Caldera diff 38 -100,000 nc -2.63
Cross Med naphtha 30 180 nc 10.13 Mejillones/Antofagasta diff 38 -125,000 nc -3.29
Cross Med gasoline 30 180 nc 10.13 USGC-Dominican Republic 38 300,000 nc 7.89
Cross Med jet 30 180 nc 10.13 USGC-east coast Mexico 38 175,000 -25,000 4.61
Med-UKC naphtha 30 190 nc 19.15 USGC-Ecuador 38 700,000 -25,000 18.42
Med-UKC gasoline 30 190 nc 18.22 USGC-Japan 38 1,125,000 -25,000 29.61
Med-UKC jet 30 190 nc 18.22 USGC-Las Minas 38 300,000 nc 7.89
Middle East and Asia-Pacific USGC-Lazaro Cardenas 38 775,000 -25,000 20.39
Mideast Gulf-UKC* 90 1,500,000 +100000 - USGC-Peru 38 775,000 -25,000 20.39
Mideast Gulf-Japan 75 85 nc 15.25 USGC-Pozos 38 350,000 nc 9.21
Mideast Gulf-Japan 55 92.5 +2.5 16.59 USGC-Rosarito 38 925,000 -25,000 24.34
Mideast Gulf-UKC* 65 1,050,000 nc - USWC-Chile (not south of Coronel) 38 900,000 nc 23.68
Mideast Gulf-Singapore 55 104 +1 10.78 Quintero diff 38 -50,000 nc -1.32
Mideast Gulf-Singapore 35 147.5 +2.5 15.87 Caldera diff 38 -100,000 nc -2.63
Mideast Gulf-Japan 35 112.5 +2.5 19.86 Mejillones/Antofagasta diff 38 -125,000 nc -3.29
Mideast Gulf-East Africa 35 142.5 +2.5 12.50 USWC-Lazaro Cardenas 38 435,000 nc 11.45
Singapore-Japan 30 130 nc 11.91 USWC-Rosarito 38 285,000 nc 7.50
South Korea-Singapore* 35 320,000 -10000 - USWC-Topolobampo 19 - - 10.66
South Korea-USWC* 35 925,000 -12500 - Demurrage $/day
SE Asia-EC Australia 30 187.5 -2.5 23.81 Atlantic coast Americas MR 38 - - 18,000
Northern Europe
UKC-US Atlantic coast 37 165 +5 20.43
UKC-east coast Mexico 37 155 +5 23.48
UKC-South America 37 185 +5 26.51 were looking for coverage for February cargoes.
UKC-West Africa 60 115 -5 15.55 Northern European markets were slightly softer as cargo
UKC-West Africa 37 185 +5 25.01 availability was insufficient to maintain steady sentiment and
Cross UKC 22 190 nc 9.50
Cross UKC 30 195 +10 9.75
rates. Participants reported that Total had a shipment avail-
Baltic-UKC 30 200 +10 16.08 able for a cross-North Sea run to load on 5-6 February, and
Others the corresponding assessment closed at WS100, down WS2.5.
ARA-Walvis Bay - - +0.8 30.10 The Baltic to UK continent rate was also WS2.5 softer on the
ARA-Durban - - +1 35.74
day at WS85.
Mideast Gulf-Walvis Bay - - +0.4 22.09
Mideast Gulf-Durban - - +0.3 16.01
*$ lumpsum Dirty Americas tankers: Rates hold
Rates were flat in the dirty Americas tanker market amid
loading. But the chartering rate could not be confirmed. very quiet chartering activity for crude movements loading
in the Caribbean and Gulf of Mexico.
Competition caps European Aframax rates Ship supply was broadly sufficient to meet demand across
Several cargoes were outstanding as the market came to all vessel classes.
a close on Monday, but competition from Suezmax vessels In the VLCC market, tonnage was more than ample but
looked to have put a cap on the current Aframax market. uncertainty surrounding discharge schedules for some ves-
Northern markets softened slightly, as enquiry from charter- sels arriving in the US limited the number of firmly available
ers was relatively limited. ships. The Caribbean-Singapore VLCC rate stayed at $3.6mn
The Black Sea to Mediterranean Aframax assessment was lumpsum.
flat at WS110 at the start of the week, with only UML report- Reliance was heard seeking a VLCC for a Caribbean-west
edly looking for a vessel on this route for mid-February coast India movement for 20 February loading.
dates. The cost of freight for a typical cross-Mediterranean In the Suezmax market, modest transatlantic demand
run was WS2.5 softer at WS107.5, and both KMG and Saras counteracted lackluster long-haul or regional demand and

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Argus Freight Issue 18-20 | Monday 29 January 2018

kept rates unchanged. The Caribbean-Singapore Suezmax Bunker prices (29 Jan) $/t
rate stayed at $2.2mn. The Caribbean-Europe rate for Low High Low High
150,000t shipments stayed at last-fixture levels of WS45.
380cst 180cst
Moderate long-haul demand for Aframax ships absorbed
some of the excess tonnage in the Caribbean, holding rates Fujairah 445.00 450.00 382.00 386.00

for shorter routes steady. The Caribbean-US Gulf coast Afra- South Korea 414.25 420.75 433.50 438.50
max rate was flat at WS90, a three-month low. Singapore 389.00 395.00 423.00 428.00
The Caribbean-Europe Aframax rate stayed at WS70.
Antwerp (3.5%S) 367.00 372.00 402.00 407.00
On the Pacific coast, vessel supply was more than suffi-
cient for weak Panamax demand in Ecuador and the rate for Rotterdam (3.5%S) 367.25 372.25 402.00 407.00

US west coast discharge dropped WS5 to WS142.5. MDO MGO

Antwerp - - 602.00 607.00

Fuel oil markets hold steady
Rotterdam - - 605.50 610.50
Handysize fuel oil rates held steady on Monday, as fixing
activity was slow to restart after the weekend. Fujairah 646.00 650.00 656.00 660.00

The price of 30,000 Baltic to UK continent freight held South Korea 625.00 630.00 635.00 640.00
steady at WS180. Charterers were slow to make cargoes Singapore 600.00 605.00 610.00 615.00
available but there was still a shortage of available tonnage
as lists shortened and momentum in the market continued Bunker prices (26 Jan) $/t
to favour owners. But there were suggestions that charterers Low High Low High
might have pushed to export more cargoes before ice re-
380cst 180cst
strictions came into place, limiting their short-term require-
ments which could push the market lower. Los Angeles 388.50 409.50 482.00 508.00

The Black Sea to Mediterranean rate was flat at WS175 Seattle 398.50 402.50 466.00 471.00
with no fixtures done on the route. Charterers had tentative Houston 348.00 353.00 526.00 534.00
bids in the market for several vessels and participants sug-
New York 374.50 379.50 416.00 421.00
gested the assessment could tick higher later in the week.
LPG freight rates
CLEAN TANKERS Route Size $/t

Mideast Gulf-Japan VLGC 30.00

East of Suez LR rates mostly firm Houston-Chiba VLGC 60.00
Some prompt demand for east of Suez Long Range (LR) tank- Houston-east coast Mexico Handy 12.00
ers lifted chartering rates slightly higher. There was some Houston-Flushing VLGC 30.00
buying demand for naphtha on the back of a bullish petro- Tees-Lisbon butane 1,800t 92.00
chemical market in Asia. Tees-ARA 1,800t 52.00
The LR1 freight rate from the Mideast Gulf to Japan
Derived LPG freight rates
increased by WS2.5 to WS92.5. Saudi Aramco placed the
Route Size $/t
Aristarchos on subjects at WS97.5 to move naphtha from
Ras Tanura-Chiba time charter equivalent $/day VLGC 15,170
Ras Tanura, Saudi Arabia to Japan with prompt 5 February
Ras Tanura-Chiba time charter equivalent $/month VLGC 461,166
loading.
Houston-Bahia Blanca* VLGC 32.09
But the corresponding LR2 rate was flat at WS85, where
Houston-Chiba* VLGC 66.45
Shell placed the Encelia on subjects to move a 5 February Houston-Flushing* VLGC 25.34
cargo. *derived $/t rate equal to Ras Tanura-Chiba time charter equivalent
In the Medium Range (MR) market, chartering rates out
of the Mideast Gulf firmed on Monday. The MR rate from the
Gulf to Japan increased by WS2.5 to WS112.5, while a voyage The MR tanker is scheduled to load from 1 February.
to east Africa also rose by the same margin to WS142.5. No A voyage from South Korea to the US west coast now cost
fresh fixtures were reported on those routes but an increase $12,500 lower at $925,000. Freepoint booked a Torm MR ves-
in cross-Gulf voyages reduced the availability of MR tankers. sel at an undisclosed rate to move ultra-low sulphur diesel
The southeast Asia to east coast Australia rate slipped by on a slightly longer voyage from Quanzhou, China to west
WS2.5 to WS187.5. Ampol chartered the Gulf Muttrah at the coast Mexico. The MR vessel is scheduled to load the cargo
equivalent rate of WS160 for a slightly bigger 35,000t cargo. from 12 February.

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Argus Freight Issue 18-20 | Monday 29 January 2018

Clean Americas tankers: Three-month lows Dry bulk freight rates

Product tanker rates fell to three-month lows in the clean Route Size ’000t $/t ±

Americas market as ship supply in the US Gulf coast over- Panamax

whelmed weak cargo demand. Murmansk - Rotterdam 70 7.70 nc
Lower throughputs at US refineries due to maintenance Richards Bay - Rotterdam 70 11.15 nc
Puerto Bolivar - Rotterdam 70 12.90 nc
continued to put downward pressure on the clean tanker
EC Australia - Japan 70 14.60 nc
market, as fewer oil product cargoes were available for
EC Australia - S Korea 70 14.30 nc
export.
EC Australia - S China 70 13.20 nc
Chartering activity was light. Valero was heard fixing a EC Australia - EC India 70 14.90 nc
Maersk-operated medium-range (MR) tanker on subjects for Indonesia - S China 70 6.50 nc
a voyage loading in the US Gulf coast. Indonesia - EC India 70 8.50 nc
The US Gulf coast-Europe rate dropped WS2.5 to WS85, Indonesia - Japan 70 7.50 nc
the lowest since 1 November 2017 as vessel supply was more Indonesia - South Korea 70 7.20 nc
than ample. Capesize
US Gulf coast-Chile rates dipped $25,000 to $975,000, the Richards Bay - Rotterdam 150 8.20 nc
Puerto Bolivar - Rotterdam 150 8.70 nc
lowest level since 12 October of last year.
EC Australia - S China 150 9.30 nc
Fixing levels were heard along the short-haul US Gulf
Richards Bay - S China 150 10.80 nc
coast-east coast Mexico route at around $175,000, lowering
Richards Bay - Krishnapatnam 150 8.60 nc
rates by $25,000 to that level for journeys on the route. Saldanha Bay - Qingdao 160 11.35 nc
On the Pacific coast, freight costs were flat on subdued WC Australia - N China 160 6.95 nc
chartering activity. The US west coast-Chile rate stayed Tubarao - Antwerp 160 8.20 nc
at $975,000 and the US west coast-Rosarito rate held at Tubarao - Qingdao 160 14.70 nc
$285,000. Queensland - Rotterdam, 23 Jan 160 10.20 -5.20

Transatlantic Medium Range rates tick higher Weekly Americas coal rates 29 Jan
The Medium Range (MR) UK continent-US Atlantic coast mar- Size
Route $/t ±26-Jan
ket ticked higher on Monday, although no fresh fixtures were ’000t
confirmed on the route. Panamax
The 37,000t UK continent-US Atlantic coast assessment US east coast - ARA 75 12.00 +0.25
gained WS5 to close at WS165. The route was untested, but US east coast - Japan 75 33.00 +2.00
rates firmed following a spate of bookings for MR shipments US east coast - India 75 29.50 nc
from the Baltic to UK continent, or from the later to west West coast North America - ARA 60 19.00 nc

Africa, which helped tighten the pool of available tonnage. West coast North America - Japan 75 15.00 +0.25
Puerto Bolivar - US Gulf 70 9.75 nc
And handysize freight in northern Europe continued to
Puerto Bolivar-Pecem, Brazil 70-75 14.75 nc
climb, while some in the market predicted that ice restric-
US Gulf - ARA 70 16.00 +1.00
tions will provide an additional boost to regional rates by
Capesize
restricting what vessels can load at specific ports. The US east coast - ARA 140 10.00 +0.75
Baltic-UK continent assessment closed WS10 higher on the US east coast - India 140 27.75 nc
day at WS200, in line with two fresh deals. BBNaft report- Handysize
edly put the British Cumulus on subjects for a 33,000t Puerto Bolivar - US east coast 30 11.75 nc
Primorsk-UK continent shipment at WS190 from 2 February, Puerto Bolivar-Itaqui, Brazil 40-50 13.00 nc
roughly equivalent to WS209 for a 30,000t cargo. And BP
booked the Torm Saone for a Riga-UK continent run from 8 Petroleum coke freight rates
February at WS195. Route Size ’000t $/t ±

US Gulf-ARA 40-50 20.00 nc

Venezuela-ARA 45-50 19.00 nc
US Gulf-Turkey 45-50 21.00 nc
USWC-Japan 60 19.00 nc
US Gulf-Brazil 45-50 19.25 nc
US Gulf-China 45-50 35.25 nc
US Gulf-east coast India 45-50 35.75 nc
EC Saudi Arabia-west coast India 45-50 10.75 nc

Copyright © 2018 Argus Media group Page 5 of 11

Argus Freight
LPG
Mideast VLGC rates slip further
The Mideast Gulf VLGC market continued to edge lower on
Monday. There was some fresh enquiry from charterers, but
ample tonnage supply — including relet vessels — continued
to outweigh relatively limited demand and push rates back
down towards their recent lows.
KPC was working a Mideast Gulf-east Asia shipment for
15-16 February loading dates. And BPCL and IOC were each
seeking a VLGC to move a split cargo — both comprising two
22,000t portions — from Mina Al Ahmadi, Kuwait, to east
and west coast India with 10-11 February and 24-25 February
loading dates respectively. Both bookings require a daughter
vessel and include Haldia as a discharging port. But the Mid-
east Gulf-east Asia assessment still slipped by another 50¢/t
to close at $30/t, undermined in part by the availability of
relet vessels.
Coaster freight rates in northwest Europe, meanwhile,
held steady. A number of charterers were active, including
Stasco seeking coverage for a 1,600t butane shipment from
Fredericia over 7-9 February dates. And SHV was working a
1,700t propane cargo at Tees from 2 February, while Eni was
understood to still require a vessel for its 800t Flushing-Aar-
dalstangen propane cargo with 8-9 February loading dates.
Dry bulk
Capesize freight market stabilises
Capesize freight rates held steady on Monday on a lack of
News
Novorossiysk resumes crude exports
Russia's Black Sea port of Novorossiysk and far east port of
Kozmino resumed crude exports over the weekend after
closures caused by poor weather.
It is unclear exactly when operations resumed or whether
the loading is back on schedule.
On 26 January, two crude tankers were waiting to load at
Novorossiysk and three were at anchor at Kozmino.
Adnoc cuts Murban allocations for March
Abu Dhabi’s state-owned Adnoc will cut allocations for its
light sour Murban crude for March but will maintain alloca-
tions of its other grades.
March allocations for Murban will fall by 25pc compared
to normal full monthly allocations, but no cuts will be made
for March-loading light sour Das and medium sour Upper
Zakum.
Adnoc told its buyers last month that it would cut Febru-
ary allocations for both Murban and Das by 20pc, and Upper
Copyright © 2018 Argus Media group Page 6 of 11
Issue 18-20 | Monday 29 January 2018
available cargoes, as charterers started the week cautiously
after rapid increases in the Pacific basin last week.
The cost of freight between west Australia and north
China was steady at $6.95/t. NYK reportedly booked an
Oldendorff vessel at $7.10/t — at a premium because of the
7-16 February laycan — with other ships under discussion at
$7/t. But the main charterers were slow to make new car-
goes available, which kept the market rate at $6.95/t for the
moment. But owners were pushing for above $7/t after the
jump last week, while charterers were reluctant to meet the
new rates and a stand-off developed.
In the Atlantic basin, rates held steady on a lack of avail-
able cargoes. Iron ore production in South America is still
minimal during the rainy season, which has limited the num-
ber of cargoes available from Brazil and kept the Tubarao
to Qingdao rate at $14.70/t. Similarly, the Puerto Bolivar to
Rotterdam rate held steady at $8.70/t.
Bunkers
European fuel prices tick higher
Prices in the northwest European bunker fuel market rose in
line with a stronger crude market.
At Rotterdam, high-sulphur 380cst prices firmed by
$2.25/t to $367.25-372.25, high-sulphur 180cst climbed $10/t
to $402-407/t and marine gasoil (MGO) was $5/t stronger at
$605.50-610.50/t. At Antwerp, high-sulphur 380cst rose by
$1/t to $367-372/t, high-sulphur 180cst was up $9/t at $402-
407/t and MGO increased by $2/t to $602-607/t.
Zakum crude by 10pc.
The reductions are in line with Opec’s decision to cut
production. Adnoc has announced monthly nomination cuts
since early 2017 in support of the UAE’s commitment to the
Opec and non-Opec output cut agreement.
Spot Murban crude cargoes have traded at premiums
to Adnoc's monthly official selling price for the last seven
months, amid firm refining margins in Asia-Pacific and tighter
supply of the grade.
Iraq details plans for exports
Iraq plans to increase its southern export capacity to 5mn
b/d by the end of the year, Iraq’s oil minister Jabbar al-
Luaibi said at a Chatham House conference on Monday.
Iraq’s southern export capacity climbed to 4.6mn b/d on
22 October after the addition of a fourth single point moor-
ing (SPM). The country exported a record high of 3.535mn
b/d in December from southern terminals, according to the
oil ministry. The country's total production is currently at
Argus Freight
around 4.35mn-4.36mn b/d, the minister said.
In addition to increasing southern export capacity, al-
Luaibi highlighted Iraq’s plans to diversify its export outlets.
Head of state-owned marketer Somo Alaa al-Yasri said Iraq’s
plan to start exporting crude from the northern Kirkuk fields
to Iran is scheduled to begin next week, an oil ministry
spokesman told Argus. This is a week later than planned,
with the exports previously scheduled to begin by the end
of January. But this depended on agreements with private
companies regarding trucking.
The oil ministry aims to complete the reconstruction
of a federally-owned damaged pipeline extending from
the Kirkuk oil fields in northern Iraq to the Turkish port of
Ceyhan by the end of the year. Oil officials suggested that
the timeline for Iraq’s export project may be optimistic. The
oil ministry has received 83 offers for the tendered pipe-
line, which is around 350km long and will have a capacity of
around 1.2mn b/d. It will extend from the city of Baiji in the
northern Salahuddin province to Fishkabour on Iraq's border
with Turkey, which will allow the federal government to by-
pass the section of the crude link from Kirkuk to Ceyhan that
is controlled by the Kurdistan Regional Government (KRG).
Iraq is also working to rehabilitate its refineries in order
to become a net exporter of petroleum products. Iraq aims
to reduce its import bill for oil products, al-Luaibi said. He
added that in 2017 Iraq increased its refining capacity by
23pc.
A total of 70,000 b/d of refining capacity was brought
back online following the rehabilitation of four refineries in
the north which were damaged by Islamist group Isis. Three
of these include the 10,000 b/d Haditha, the 20,000 b/d
Siniya and the 30,000 b/d Kisik refineries.
The oil ministry said on Monday that the project to build
a 300,000 b/d refinery and a petrochemical complex at
Fao in Basrah has been awarded to two Chinese firms, one
of which is PowerChina. The ministry has also announced
the start of rehabilitation work on Salahuddin 2 unit at the
300,000 b/d Baiji complex that is non-operational after suf-
fering extensive war damage. Work on the 70,000 b/d unit
should be completed in six to nine months, the ministry said.
Al-Luaibi added today that Iraq aims to operate 50pc of the
refinery by the end of the year. Plans have been drawn up to
rehabilitate a second 70,000 b/d unit at the plant.
Tenders to build several new refineries in Iraq are ongo-
ing, but deadlines for bids continue to get postponed. Invest-
ment interest has been thin with foreign firms concerned
the location of some of the plants, far from ports, could
result in the domestic market capturing oil product sales
completely. This would mean returns on potential investors'
funding would depend on the government's ability to pay for
products.
Iraq said in October last year that Chinese state-owned
CNPC had expressed interest in participating in the Nasiriya
Copyright © 2018 Argus Media group Page 7 of 11
Issue 18-20 | Monday 29 January 2018
integrated project, which previously included the joint con-
struction of a 300,000 b/d refinery alongside development of
the field. The ministry's most recent statements list capacity
at 150,000 b/d. He added that the firm has withdrawn inter-
est now that the project has been separated.
The oil ministry is still in discussions with ExxonMobil
to invest in the multi-billion South Integrated project that
would develop Basrah's pipeline infrastructure, oil terminals
and storage facilities. The project includes the Common
Seawater Supply Project (CSSP). The ministry said in October
it was in final stages of negotiations, but former oil minister
Thamir Ghadhban suggested that discussions may not be
concluded until the first quarter of 2018. Al-Luaibi is meeting
the chief executive of ExxonMobil this evening.
In total, investment opportunities for oil, gas and infra-
structure in Iraq comes to over $20bn, al-Luaibi said.
Asian fuel demand to outpace supply: S-Oil
South Korean refiner S-Oil expects profit margins on oil prod-
ucts to remain robust this year as steady growth in demand
exceeds net capacity additions in Asia-Pacific by 60pc.
New crude-processing capacity will exceed plant closures
in the region by 500,000 b/d, but demand will increase by
about 800,000 b/d, S-Oil said. Net capacity additions glob-
ally will total 680,000 b/d, compared with an IEA estimate
for demand growth of 1.29mn b/d.
S-Oil also cited favourable market fundamentals for pet-
rochemicals. Demand for paraxylene (PX) in the Asia-Pacific
and Middle East regions will increase by almost 3.1mn t in
2018, exceeding capacity expansion of 2.1mn t. Downstream
demand growth for PX, polypropylene (PP) and benzene will
be solid, leading to wider profit margins.
PP capacity additions are scheduled to about match
demand growth at more than 2.7mn t, but some of those
new units will be delayed by Chinese environmental regula-
tions, S-Oil said. Margins for propylene oxide (PO) will be
boosted in this year’s first half as plant maintenance disrupts
supplies, but capacity additions in the second half will ease
upward pressure on prices.
The mostly bullish market outlook follows a fourth
quarter in which S-Oil’s profit margins remained strong, but
narrowed from earlier in the year. Supplies of refined fuels
increased in October-December as new capacity came on
stream and refiners on the US Gulf Coast recovered from
Hurricane Harvey. The benchmark Singapore refining margin
was 19pc higher than a year earlier at $5/bl, but down from
$5.50/bl in the third quarter of 2017.
Fourth-quarter margins on PP, PX, benzene and lube base
oils also narrowed late in the year. The average PP spread
was $348/bl, down from $356/bl a year earlier and $413/bl
in the third quarter.
South Korean refiners benefitted from record exports last
year, as sales to such countries as Vietnam and the Philip-
Argus Freight
pines surged. S-Oil, which relies on exports for more than
half of its sales, posted an 8.5pc gain from a year earlier in
the fourth quarter to 385,000 b/d.
Fourth-quarter operating profit climbed by 25pc on the
year to 458.6bn won ($428.8mn), while revenue rose by 28pc
to W5.81 trillion.
S-Oil’s new residue-upgrading and olefin-downstream
complexes under construction in Ulsan were 94pc complete
at the end of 2017, more than two percentage points ahead
of schedule. The company still plans to start operations at
the new units in this year’s first half. Capital spending this
year will drop by 24pc to an estimated W1.91 trillion, as
the major project heads toward completion. Upgrading and
maintenance costs are targeted to jump 51pc to W201.7bn.
CPC shuts Taoyuan refinery after fire
Taiwan’s state-controlled CPC has shut its 200,000 b/d
Taoyuan refinery after a fire early on Monday.
The fire hit at 06:40 local time today (22:40 GMT yester-
day) as CPC was attempting to restart the refinery’s 15,000
b/d No.2 residue desulphurisation (RDS) unit after a near
one-month maintenance.
Initial investigations indicate the fire might have started
at a damaged heating furnace tube. The fire has been extin-
guished with no known casualties, but the refinery has been
shut as a result.
The Taoyuan refinery is a key producer of ultra-low sul-
phur diesel (ULSD), accounting for around 30,000 b/d or 20pc
of CPC’s total ULSD output. CPC also operates the 300,000
b/d Dalin refinery.
Repsol takes desulphuriser, CHP offline
Spanish integrated Repsol is taking offline for maintenance
a 35,000 b/d gasoil desulphuriser and a combined heat and
power (CHP) plant at its 240,000 b/d Petronor refinery in
Bilbao.
Petronor did not give the expected duration of the turn-
around but said production would not be affected.
The HD3 desulphuriser processes the heavy gasoil pro-
duced by the refinery's 2mn t/yr delayed coking unit, which
is ramped up when the refinery processes heavier crudes
such at Mexican Maya Blend and occasionally Canadian syn-
thetic crudes.
The CHP produces power from by-products such as refin-
ery gas and sells its excess electricity production to Spain's
power grid.
Iraq progresses refinery build work
Iraq's oil ministry said that the project to build a 300,000 b/d
refinery and petrochemical complex at Fao in Basrah prov-
ince has been awarded to two Chinese companies.
And the ministry said that investors will soon be invited
to bid to build a 150,000 b/d refinery at Anbar and a similar
Copyright © 2018 Argus Media group Page 8 of 11
Issue 18-20 | Monday 29 January 2018
sized plant at Dhi Qar.
The awarding of a contract for the Fao refinery is a step
forward for the Iraqi government, which aims to achieve
self-sufficiency in products and develop a petrochemical
export industry but which has had to postpone deadlines for
expression of interest on several occasions.
The government aims to expand refining capacity by
1.3mn b/d through foreign investment contracts. But interest
has been thin with foreign firms concerned that the location
of some of the plants far from sea ports could result in the
domestic market capturing oil product sales completely.
The ministry has also announced the start of rehabilita-
tion work on Salahuddin 2 unit at the 300,000 b/d Baiji com-
plex that is non-operational after suffering extensive war
damage. Work on the 70,000 b/d unit should be completed
in six to nine months, the ministry said. Plans have be drawn
up to rehabilitate a second 70,000 b/d unit at the plant.
Pemex crude production up in December
December crude production at Mexico’s state-run Pemex
was up 0.3pc to 1.873mn b/d from the previous month and
down 8pc from December 2016, according to company data.
Average production in 2017 reached 1.948mn b/d, mean-
ing Pemex slightly surpassed its annual output target of
1.944mn b/d.
Mexican officials have vowed to reverse by the end of
2018 a decline in production that began in 2004, when out-
put peaked at 3.4mn b/d. Pemex's annual forecast for 2018
says crude production will grow to 1.951mn b/d.
December crude exports were 1.401mn b/d, up nearly
1pc from November and up over 25pc from December 2016.
Annual average exports for 2017 were down 1.6pc from
2016, at 1.174mn b/d.
During December the Americas remained Mexico’s big-
gest client, accounting for 50.8pc of all exports, followed by
Asia-Pacific and other regions (28.4pc) and Europe (20.7pc).
India’s crude output falls in December
India’s crude production fell by 2.1pc year on year in Decem-
ber, prompting a rise in imports to meet stronger fuel sales.
Crude output was just over 709,000 b/d last month, ac-
cording to preliminary oil ministry data. Output fell by 0.4pc
to 717,000 b/d in April-December, the first nine months of
India’s financial year, because of ageing fields and a lack of
new discoveries.
Production at state-controlled upstream firm ONGC fell
by 5.6pc from a year earlier to 402,000 b/d, equivalent to
57pc of national output.
Indian fuel consumption in December rose by 7.5pc from
a year earlier to 17.39mn t. Crude imports hit a near all-time
high at 4.64mn b/d last month, as domestic production was
insufficient to meet growing demand. LNG imports rose by
6.8pc from a year earlier to the equivalent of 65.5mn m³/d
Argus Freight
of gas.
Domestic natural gas in December rose by 0.5pc from a
year earlier to 88.75mn m³/d. Average production in April-
December period rose by 3.4pc to 89.8mn m³/d.
ONGC’s gas production rose by 3.8pc from a year earlier
to 64.5mn m³/d last month, or 72pc of the Indian total.
German LPG demand climbs in November
German demand for LPG increased by over 17pc in Novem-
ber from October, to 317,000t, according to the export
control authority Bafa.
The figure also represents a climb of 40pc from 226,000t
in November a year earlier.
Demand for propane will generally increase leading up to
winter as end users stock up on heating fuel.
Demand for LPG for autogas purposes began to climb
from July following a government decision to extend tax
incentives for the fuel. This contributed to a jump of over
35pc in cumulative demand for the first 11 months of the
year, during whichn time total offtake was recorded at
3.8mn t compared with 2.8mn t in the same period 2016.
ARA stocks little changed
Coal stocks in the Amsterdam-Rotterdam-Antwerp (ARA)
region are little changed, as steady arrivals are helping to
offset slightly higher demand in Germany.
Inventories at the four main ARA terminals are at 4.14mn
t today, down by just 15,000t compared with a week earlier,
but around 770,000t below the four-year average.
Stocks at the EMO and EBS terminals are unchanged at
2.5mn t and 165,000t, respectively, while OBA inventories
have increased by 50,000t in the past week to 1.25mn t.
Ovet's reserves have declined by 65,000t to 220,000t.
EMO has received five coal shipments in the past 10 days
— two Capesize cargoes from Colombia, a Panamax and post-
Panamax from Russia and another Capesize from Australia.
The terminal is scheduled to take four further deliver-
ies by 5 February, port data show, with Capesize shipments
from Colombia and Mozambique and post-Panamaxes from
Chile and Russia due.
Thermal coal imports from Chile reached 334,000t in
January-October last year, up from just 45,000t in the whole
of 2016 and 209,000t in 2015, according to Eurostat.
German power generation has fallen by almost 2pc on
the week to 11.25TWh. But coal burn has risen to offset
lower output from renewables and other sources, research
group Fraunhofer Ise said.
Coal-fired production has climbed by 420GWh on the
week to 1.65TWh, while wind and lignite-fired genera-
tion have slipped by 340GWh to 3.1TWh and by 220GWh to
2.5TWh, respectively.
Coal burn remains around 50pc lower this month than
a year earlier, at around 1.4 TWh/week, because of a 75pc
Copyright © 2018 Argus Media group Page 9 of 11
Issue 18-20 | Monday 29 January 2018
increase in wind output to more than 3 TWh/week.
Forecast load factors of 34-72pc to 2 February suggest
that wind power production will rise this week. This, com-
bined with above-average temperatures, may dampen coal
demand for power generation.
AET takes delivery of newbuild tankers
Singapore-headquartered American Eagle Tankers (AET)
has taken delivery of four newbuild tankers, the Aframaxes
Eagle Barcelona and Eagle Brisbane, and the Suezmaxes
Eagle San Francisco and Eagle San Jose.
The Aframaxes, each 113,400dwt, were delivered on 24
January by Samsung Heavy Industries in Geoje, South Korea,
and the Suezmaxes, each 157,512dwt, were delivered on 26
January by Hyundai Heavy Industries in Ulson, South Korea.
The tankers are the latest delivery of AET’s ongoing fleet
rejuvenation program, the company said.
Later in 2018 AET will take delivery of two additional
Aframax tankers. The company also has a pair of DP2 shuttle
tankers on order for delivery in 2019. All four of these ves-
sels will be dual-fuel LNG capable. LNG-fueled ships are a
sustainable solution in both the mid- and long-term to meet-
ing emissions reduction targets, the company said.
AET operates a fleet of 14 VLCCs, six Suezmaxes, one
Panamax, 47 Aframaxes, four DP shuttle tankers, 13 chemi-
cal carriers, five LR2s, three MR2s and one LPG tanker.
TOTE suspends plans for four US-flag ships
Shipping company TOTE put on hold plans to commission
four liquefied natural gas-fueled containerships, which were
slated to travel between the US mainland and Hawaii, be-
cause of port infrastructure issues.
The company will not renew its letter of intent for the
construction of the vessels with Philly Shipyard, which ex-
pires on 31 January. The agreement was for the delivery of
two vessels in 2020 and two vessels in 2021.
In September 2017, the Hawaii Department of Transpor-
tation earmarked access to Piers 1 and 2 in the Honolulu
Harbor and use of the adjacent 45 acres in 2020, to accom-
modate TOTE’s new service to Hawaii. TOTE suspended its
vessels order following the result of a technical review of
Piers 1 and 2. TOTE’s study of the site showed that upgrades
of the infrastructure are required in order to accommodate
its operations. But the shipping company continues to work
with the Hawaii Department of Transportation in order to
arrange access to Honolulu’s deep water terminal.
Two other shipping companies will compete with TOTE
on the US mainland – Hawaii route: Matson and Pasha Ha-
waii. Both companies have ordered newbuild LNG-powered
vessels for this route. Matson has on order with Philly Ship-
yard two 3,600 twenty-foot equivalent unit (TEU) container-
ships to be delivered in the third and first quarter of 2019.
Matson also has two combination container and ro-ro vessels
Argus Freight
on order with shipbuilder General Dynamics NASSCO, to be
delivered in the fourth quarter of 2019 and in the second
quarter of 2020. Pasha Hawaii will take delivery of two con-
tainerships from shipbuilder Keppel AmFELS in the first and
the third quarter of 2020.
Pemex Madero refinery restart delayed: source
State-run Pemex will restart its 190,000 b/d Madero refinery
on Mexico's Gulf coast closer to 19 February instead of late
January as first planned, sources close to operations told
Argus.
The company said in December that everything was set
for a late January restart after the plant was shut in August
for an extensive maintenance program. The restart was
originally scheduled for late December.
Delays in the purchase and supply process for new equip-
ment and machinery are the main reason for the later start
date, the source said.
As Pemex is a state-run company, many of the purchase
and supply contracts need to go through a public tender
processes which adds transparency — but takes longer.
Also, specialized parts and equipment needed to
modernize refineries are not usually in stock even with the
manufacturer.
“A usual timeframe for these parts to be available is 40
to 50 days, but the problem is they ordered the parts after
the refinery shut down," the source said. "They should have
placed the orders two or three weeks before shutting the
refinery."
Pemex did not respond to a request for comment from
Argus.
The Madero refinery has processed no crude since
September and only processed 9,425 b/d of crude in August.
During January 2017 the plant processed up to 82,193 b/d.
The delay will not help Mexico’s tough year in the refin-
ing sector. The utilization rate in late 2017 was under 50pc
on average in the six refineries that form the country’s
national refining system.
Madero had a 26pc utilization rate from January through
November, according to the latest statistics from the minis-
try of energy (Sener).
This Tamaulipas-based unit is one of the main produc-
ers of jet fuel, a product that will be liberalized this year.
Jet fuel imports have grown 73pc from November 2016 to
November 2017.
Mexico’s biggest refinery, the 330,000 b/d Salina Cruz,
was affected last year by earthquakes and flooding which,
added to the Madero outage, resulted in the country’s worst
year in refined products output. Pemex's production of
gasoline, diesel, LPG, kerosene and fuel oil averaged 915,100
b/d, under the 1mn mark that Pemex uses as a reference.
Copyright © 2018 Argus Media group Page 10 of 11
Issue 18-20 | Monday 29 January 2018
Scrubber uncertainty lingers for bunker buyers
As the January 20202 implementation date for new marine
fuel regulations draws nearer, the industry’s largest consum-
ers remain broadly indecisive on proposed exhaust scrubber
installations.
In less than 24 months International Maritime Organiza-
tion (IMO) regulations will require vessels to burn 0.5pc
sulphur maximum bunkers outside of Emission Control Areas
(ECAs) to meet emissions limits, down from the current
3.5pc sulphur maximum bunker limit. Scrubbers enable
shipowners to comply with the new statutes on burning
high-sulphur residual fuel oil, rather than turn to higher-cost
alternative fuels such as 0.5pc bunkers or liquefied natural
gas.
But scrubber installations lack appeal among contain-
ership, dry bulk and tanker vessel owners. A study by the
US-headquartered organization International Council on
Clean Transportation (ICCT) estimated that in 2015 these
vessel classes accounted for 78pc of the global residual fuel
oil bunker demand: containerships for 30pc, bulk carriers
for 25pc, oil tankers for 16pc and chemical tankers for 7pc.
The study pegged global demand for residual bunker fuel at
210.27mn t and for marine distillates at 49.52mn t in 2015.
Containership owners Hapag-Lloyd and Maersk noted last
year that they will use 0.5pc sulphur bunkers to comply with
the 2020 regulation rather than installing scrubbers. In 2016,
Maersk burned 10.12mn t of residual fuel oil and 617,000t of
marine distillates and following its approved merger with
containership owner Hamburg Sud, the new company will
account for 19.3pc of the global containership fleet capac-
ity. Hapag-Lloyd merged with shipping company Compania
Sudamericana de Vapores (CSAV) at the end of December
2014 and in turn merged with United Arab Shipping Company
in March 2017. In the first nine months of 2017, Hapag-Lloyd
burned 2.47mn t of heavy bunker fuel and 369,200t of ma-
rine distillates.
Japanese containership, dry bulk and tanker companies
Kawasaki Kisen Kaisha (K Line), Mitsui OSK Lines (MOL) and
Nippon Yusen Kabushiki Kaisha (NYK) also received final ap-
proval to launch their joint venture company Ocean Network
Express this month. The combined companies consumed over
14mn t of heavy bunker fuel and marine distillates during
their fiscal year 2016, which ended on 31 March 2017. NYK
commissioned scrubbers on two newbuild 56,000 dwt bulk
carriers, which will be delivered by the end of 2018 and in
the first quarter of 2019, and MOL noted in its annual report
that it plans to address the impact of the 2020 marine fuel
regulations, which is expected to raise its marine fuel bill,
by increasing the freight rates it charges customers. In
2016, MOL launched a study on the feasibility of scrubbers.
Separately, K Line tested a scrubber on its car carrier Drive
Argus Freight Issue 18-20 | Monday 29 January 2018

Green Highway in 2016, has not announced other scrubber
initiatives after this test.
Two other containership companies may be considering
scrubbers for newbuild orders, including CMA CGM and MSC.
In 2017, France-based CMA CGM signed a memorandum of
understanding with the French oil and gas company Total,
which will provide CMA CGM with 3.5pc sulphur bunkers
for ships outfitted with scrubbers as well as 0.5pc sulphur
fuel and LNG for bunkering. CMA CGM does not disclose its
marine fuel consumption. CMA CGM merged with shipowner
Nepture Orient Lines (NOL) in September 2016. NOL is the
parent company of American President Lines (APL), which
retrofitted the 65,792 dwt containership APL England with a
scrubber. Privately-owned containership company Mediter-
ranean Shipping Company (MSC) has four 23,000 twenty-foot
equivalent unit (TEU) containerships on order, but did not
disclose if the vessels will be outfitted with scrubbers. In
2016, MSC burned 7.28mn t of heavy bunker fuel and 1.02mn
t of marine distillates.
If history is predictive of future shipowner behavior, it is
unlikely that containership, tanker and dry bulk vessel own-
ers will rush toward scrubber installation. In January 2015,
the marine fuel sulphur limit in the ECAs dropped from 1pc
to 0.1pc. While the change impacted most of US territorial
waters, the bulk of the US-flagged vessels operating in these
areas switched from burning 1pc sulphur residual fuel oil to
marine gasoil. Their bunker bill increased, but they passed
the expenses to their chartering customers. Only two US-flag
vessel owners have installed scrubbers: Interlake Steamship,
which retrofitted four bulk carriers and Matson, which retro-
fitted three containerships.
Globally, scrubbers have gained traction with ferry and
cruiseship operators, but these vessel classes account for
minimal fuel oil demand. According to the ICCT’s study, pas-
senger and cargo ferries accounted for 3.5pc and cruiseships
accounted for 4pc of residual fuel oil burn in 2015.
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