New York-listed product and chemical tanker shipping firm Ardmore Shipping on Wednesday (31 July) noted the refining industry starting to make preparations for the production of IMO 2020 compliant marine fuels before the deadline of 1 January 2020.
“The second quarter reflected a typical seasonal decline marked by notably high refinery maintenance levels, with refineries frontloading maintenance in preparation for increased throughput during the second half of 2019 to meet demand for IMO 2020-compliant low sulphur fuels,” said Anthony Gurnee, Chief Executive Officer.
“Industry-wide preparations for IMO 2020 implementation are unfolding as expected; marine fuel providers are commencing clean-up of their logistics infrastructure and are preparing to stockpile low sulphur fuels in large quantities ahead of the switch-over, which so far is very limited in quantity but is expected to be in full-swing in September.
“One consequence of IMO 2020 preparations already is pricing and availability of HSFO, which is being impacted by reduced storage and barging capacity, as some capacity is already being taken out of service for the switchover to VLSFO.”
Gurnee noted the increases in refinery throughput and heightened oil trading activity will result in a roughly 5% additional layer of product tanker demand commencing in the next few months, with the potential to last up to two years before markets reach equilibrium.
“In keeping with our ongoing commitment to environmental stewardship, we are commencing reporting our CO2 emissions this quarter,” he highlights.
“Beyond owning and operating a modern "eco" fleet, we have maintained a strict focus on fuel efficiency and environmental best practices throughout the Company's history.
“We believe that a commitment to increased transparency by companies such as Ardmore will play an important role in encouraging positive and sensible legislative change toward reducing greenhouse gas ("GHG") emissions from the shipping industry."
The company posted net loss of $9.94 million in the three months ended (Q2) June 30 2019, an increase over net loss of $8.58 million in the similar quarter during 2018.
Published: 2 August, 2019
