Home News Fuel Prices Fuel Quality Directory Community Store
Community Blogs Nick Jameson Taming Emissions
Nick Jameson Nick Jameson is Senior Editor with Bunkerworld.
Nick Jameson has been reporting on the shipping and the marine fuel industry for almost twenty years. He is based in Petromedia's UK office. More blogs from Nick Jameson
Playing Politics Jul 16 With less than six months to go before stricter sulphur limits come into force the worlds of politics and shipping have collided in confused debate. An awful thought 2014 Weak enforcement of ECA regulations could encourage some shipping companies to flout the rules.
Taming Emissions 27th April 2015 15:20 GMT
'Slow steaming is here to stay' was sounding a little less convincing at the beginning of 2015.
Crude oil prices had dropped some 60% in the previous seven months, dragging down bunker prices in their wake.
Suddenly the economic case for cutting fuel consumption by throttling back on engine power looked a lot shakier than it did in 2009.
Warren Buffett is credited with the quip: "You see who has been swimming naked when the tide goes out." He was talking about investments, of course, and how the weakness of a position can be disguised by a rising market. It's not an exact parallel, but something of the same seems to be going on here. The truth about shipping's commitment to slow steaming on environmental grounds has been laid bare. The truth, it seems, was that the commitment was pretty shallow.
Few of the discussions about returning vessels to faster speeds have focused on environmental issues. Some maritime commentators have taken a broad, cross-industry view. They've pointed out that slow steaming addresses problems of over capacity, particularly in the the container shipping sector. But if freight rates firm and bunker prices fall, individual shipping lines are no more capable of acting in the interests of the industry as a whole than OPEC members are of protecting the interests of their cartel. As for a collective commitment to the environment - forget it.
This isn't grounds for a self-righteous critique the shipping industry. Shipping companies are run for profit. They can't operate on good intentions. If they sacrifice profit for policy they will be eaten alive. If it turns out that slow steaming - and the reduction in emissions it generates - beats an embarrassed retreat, the lesson is clear: Protecting the environment is not something the market does by itself. International regulation is essential.
That's not to to forget the huge difference between good regulation and poor regulation. There was, and remains, industry concern about the 0.10% sulphur caps introduced in emission control areas (ECAs). There is huge concern about the proposal for a global sulphur cap of 0.50% for bunker fuel - possibly as early as 2020.
well considering NEW dropped about 60% yesterday afternoon i would say we should count our blessings! :)
With QFI, we all know we are just in a holding pattern till the refinery RNS comes through. Just got to either:-
1) take your money out and invest it somewhere where it might grow while you wait, but risk missing news and have to buy back in at a higher price
2) Sit on it and go off and read a book, play some games, paint a picture....anything really to while away the time.
I personally keep coming back to why i invested in QFI initially. Good product, good partners to work with, lots of potential. None of that has changed, so i guess i will carry on sitting on my egg hoping it will eventually hatch :)
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.