Shipping & Finance Available Blends – Steve Bee from VPS As yet we are seeing no new fuel blends coming to market, however, one major fuel supplier has stated they will be making such a fuel, compliant to 2020 requirements available soon. Looking back at the introduction of the revised ECA limit back on 1st Jan 2015, we did not see new ECA-compliant fuels come to market until we were into the final twelve months leading up to the legislative introduction. Therefore 2020 may also follow this approach. We expect that the new fuels will be blended fuels of not only residual and distillate components, but various other cutter-stocks, diluents and additives. It is this higher level of blending which may well have a detrimental effect on fuel quality … The commercial perspective I – Mike Martino from Glander International For deep sea clients – the liner services seem to be taking a more proactive stance – some investing in scrubbers, while others entering into early contracts with suppliers to ensure availability of ULSFO max 0.5%. Tramp clients don’t necessarily have that luxury, and will likely have to wait and see. What will actually be available with the physicals? If demand goes way down for IFO 3.5%, such as RMG 380, then as a supplier, why produce it? Yet, the only reason owners would install scrubbers is to continue to consume the less expensive, 3.5% sulphur fuel. But, let’s say on the supplier side they concentrate on producing ULSFO – the current grade RMD 80, with a max sulphur of 0.1%. This has been in existence for over a year, as a slightly cheaper alternative to LSMGO, for ECA zone compliance. blends, if you take typical ECA-compliant MGO and blend it with today’s typical heavy fuel oil (HFO), the blend ratio would be about one part HFO to six parts MGO. This would not be a good blend and would often make unstable blends, especially if the MGO is very paraffinic (waxy) and the HFO very aromatic. The ship’s chief engineer needs to know the viscosity and other key parameters of the fuels they receive, in particular the fuel’s cold flow properties.« Another perspective comes from bunker broker Mike Martino, from Glander International: »Now, think about when 2020 kicks in – suppliers will be able to produce a similar ULSFO, but can blend down to 0.5% sulphur for the global cap, but that would not comply with the 0.1% ECA limit. So, will it make sense to blend two different ULSFO products? Probably not.« Sludges and blending Steve Bee, Veritas Petroleum Services’ (VPS) Business Development Director, was asked by HANSA about the chemistry and physics that go along with blending. He explained: »Mixing any fuels, where residuals are involved can potentially result in a detrimental effect upon the chemistry of the fuels involved. Such blending can cause a weakening of the Reserve Stability of the residual fuel, causing long chain asphaltenes within the fuel to fall out of solution and form thick sludge which can block filters and pipework and starve an engine of fuel.« He also cautioned that: »Other cutterstocks and diluents can potentially introduce forms of contamination which, can set off chemical reactions which can seriously effect a vessel’s operations, such as the polymerisation of monomers within the fuel, or the presence of phenolic compounds, which can then produce sticky material capable of seizing fuel pumps/ injectors.« The practical problems from blends, even those using distillate fuels, will require close supervision from experts, certainly during the likely manic days 148 HANSA International Maritime Journal – 155. Jahrgang – 2018 – Nr. 9
Shipping & Finance The commercial perspective II – Kim Ullman from Concordia Maritime This UN directive is for the refiners/traders to fix. We produce, own and operate ships and happy to run on any technically acceptable compliant fuel. Bunker prices don’t dictate freight markets. Supply and demand of vessels does. If all ships pay the same amount – the cost will be transferred to the oil co/charterer who will charge it at the pump and the end consumer will pay. As it should with the market economy … on a more economical and practical point of view – market forces will fix this in the longer run. And it is working on it as we speak. The oil industry will find new/alternative use of cheap HFO – there is always a home for something that is »cheap« and the oil industry will find ways of blending, cracking or otherwise produce compliant fuels. If the shipping industry – read tankers, in my case, are providing continued use of HFO through scrubbers – I don’t think that is good. Let market forces play its role. Photo: Concordia in early 2020. Steve Bee says: »Distillate fuels are also not exempt from the effects of treatment and blending, where numerous processes or blending can result in reduced lubricity and oxidation stability. The process of hydro-desulphurisation can remove the natural lubricating species and stability species within fuels. It is also regularly seen blending result in reduced Flash-Point, and wax-precipitation due to cold-flow property issues. In addition under certain storage conditions, microbial growth can be witnessed with distillate fuels.« New blends will need to ensure handling, treatment and storage conditions are suitable to avoid any of the above, especially compatibility and stability, he adds. »Therefore testing of the fuel pre-burn, with expert fuel management advice is key to ensuring safe, compliant vessel operation.« In July, the International Standardisation Organisation (ISO) stated that its ISO 8217 standards would apply to low-sulphur blends. Cooperation needed Kim Ullman from Concordia Maritime stressed the need for cooperation between the oil refiners and their shipping customers: »We have cooperations via our contacts in the oil industry in general and bunkers in particular. We are following it quite closely and we are convinced that there will be compliant blends available at the time, or close thereabouts. There is going to be a lot of testing etc. and there are legitimate concerns about some of the blends and also about the mixing/switching of blends between bunkering. This needs to be developed together between oil and shipping industry.« He added, »if the oil industry and shipping industry cooperate, then the spike/hike might not occur – or quickly change back to ›normal‹ 200 $ range. My main point is that, over time, market forces will prevail and what the industry needs the industry will make sure it gets.« n An Ocean of Expertise Complete Solutions from a Trusted Partner Newbuilding & Conversion Crew, Technical & Commercial Management Maritime Training Catering & Housekeeping Seafarer & Corporate Travel Software Application Solutions Port Agency & Bunkering Services Insurance Services Global Support & Expertise www.bs-shipmanagement.com HANSA International Maritime Journal – 155. Jahrgang – 2018 – Nr. 9 149
