Last year Unipec controlled 17% of all dirty cargoes globally, compared to 14.7% in 2018, totaling in 230,732 million tons.
Other notable mentions in the ranking are Petrobras (moving up to 9th from 18th), Equinor (new at 19th) and SK Corp (new at 20th), Poten and Partners said in a tanker market review.

In the VLCC segment, the Chinese giant had more reported VLCC fixtures than the next eight largest VLCC charterers combined.
“If we add in Sinochem (#4), Petrochina (#10), and CNOOC (#19), the Chinese dominance in the VLCC spot market is even more overwhelming. It should be noted that charterers with a large controlled fleet and/or a preference for private deals keep a low profile in these rankings. We recorded a total of 2,434 reported VLCC spot fixtures in 2019 (up 6.5% from 2018),” Poten said.

In the Suezmax segment, Shell claimed the top spot, but Unipec is a very close second. As explained by Poten, the Chinese oil trader was not even in the top 10 in 2018! Repsol, which was the top Suezmax charterer in 2018, slipped to third in the rankings. ExxonMobil improved its position from 9th in 2018 to 4th last year. Vitol was a new entrant at the top of the rankings, pushing Lukoil out of the top 10.

The total number of reported Suezmax spot fixtures in 2019 (2,675) was 9% lower than in 2018 (2,944).

In the Aframax segment, Vitol and Shell maintained their position on top of the rankings. Like in the Suezmaxes, Lukoil is dropping back here as well, while Unipec gained two places.  The total number of reported Aframax spot fixtures increased in 2019 to 3,734 fixtures from 3,551 in 2018 (+5%).

In 2016, the International Maritime Organization announced that they would be implementing strict new Sulphur regulations, known as IMO2020.

If you’re involved in Global Trade then you’ve probably heard of the upcoming regulations that are set to take place on the 1st of January 2020.

In this article, we explain what the IMO2020 regulations are, how shipping lines are preparing for the changes and how it will affect shipping and International shipping costs.
What is IMO2020?

IMO2020 regulations relates directly to the level of Sulphur Oxide (SOx) emissions that are produced by shipping vessels that are sailing all around the world.

Why are the IMO2020 regulations being enforced?

All modern commercial ships and container ships run their engines on traditional types of fossil fuel.  These are generally known throughout the industry as ‘bunker fuels’.  These fuels include:

MDO – Marine Diesel Oil
MGO – Marine Gas Oil
IFO – Intermediate Fuel Oil
HFO – Heavy Fuel Oil
MFO – Marine Fuel Oil

These types of oils contain high levels of Sulphur, which, after combustion, results in the emission of Sulphur Oxides (SOx) into the atmosphere.  The IMO have reported that these emissions can cause health and environmental problems.

According to the IMO, limiting SOx emissions from ships will improve air quality in port cities and coastal areas, and protect the environment. The aim of the new regulations is to:
Reduce health issues such as respiratory symptoms, cardiovascular disease and lung disease in port cities and coastal areas
Reduce the occurrence of acid rain, which can harm crops, agriculture, forests and the oceans
Reduce the occurrence of lighting storms along popular trade routes

To combat these emissions the IMO2020 regulation states that the limit of Sulphur in fuel oil used must be reduced from current regulations of 3.50% m/m, down to 0.50% m/m (mass by mass).

How are shipping lines preparing for IMO2020 regulations?

Most of the responsibility to meet IMO2020 regulations lies in the hands of the carriers, i.e. the shipping lines that carry the cargo.  These shipping lines must ensure that their fleets comply with the regulations.

It’s widely regarded in the industry that most ships will switch to using low sulphur fuel to meet IMO2020 regulations. To meet these regulations, shipping lines have 3 main options as below:
Purchase cleaner, low-sulphur fuel

Shipping lines can change the fuel they use to run their engines.  They can switch from using traditional bunker fuels (High-Sulphur Fuel Oils, HSFO), to using Marine Gas Oils (MGO).  These new MGOs can cost up to 50% more than the HSFO oils already being used.
Install Exhaust Gas Cleaning Systems, known as “Scrubbers”

Shipping lines can still choose to run their vessels on HSFO fuels.  To meet the low sulphur regulations of 0.05% m/m, “scrubbers” can be installed to reduce emissions.  These scrubbers are designed to remove Sulphur Oxides from the ship’s engine and boiler exhaust gases.
Installing scrubbers can cost between $5-$10 million, take 6+ weeks to install and are only made by a limited number of manufacturers around the world.
Due to this, some older ships have already started to be scrapped, with more ships likely to go to the shipping graveyard towards the end of 2019.

Switch to Liquefied Natural Gas (LNG)
Most ships will switch to using low sulphur fuel such as LNG to meet regulations.  However, switching to LNG fuels will cause the industry a few issues.
Ships with LNG tanks fitted will take up more physical space, these new tanks could take up almost 3% of a vessel’s TEU slots.  As a result, this will reduce the amount of shipping containers that can be carried.
Also, due to the likely drastic increase in demand for LNG fuels, it has been reported that the price of LNG may increase as much as 50%.

So what does IMO2020 mean for shippers? How will IMO2020 affect shippers, shipping costs and end consumers?

Shippers don’t need to make any drastic changes to their process, but they do have to be aware of the price hikes will definitely take place in 2020. Industry sources believe that the price of ship fuel is likely to go up by 50%. This could increase the cost of port-to-port seafreight costs by 10-20%.

The short story is, price increases will be passed onto shippers, which will ultimately be passed on to end consumers.  As shippers are aware, any past cost increases along the supply chain has been inevitably passed to the shippers, which increases the landed cost of goods.

The port-to-port seafreight costs will increase and will be passed on to the party that is paying for the seafreight. The party that ultimately pays for the seafreight depends on the IncoTerms that goods are sold. For example:
If exporters ship on CIF/CFR terms, they are already covering the costs of seafreight, so the exporter’s costs will increase.
If the exporter is selling on FOB terms, the importer is paying for the costs of seafreight, so the importer’s costs will increase.

In both cases, this will inevitably increase the landed cost of products. Importers and exporters must take note and closely monitor the increases in order to understand the actual cost of their products, and sell pricing. Importers and exporters will then be faced with the decision of how much of the increased costs they are willing to absorb, and how much will be passed on to customers and end consumers in the market.
The increased costs of fuel could also increase vessel transit times. Shipping lines may increase the practice of “slow steaming”, where ships sail at slower speeds to conserve fuel.  This will further restrict capacity and also increase transit times.

How can shippers counteract IMO2020?
There will be no avoiding the price increases in 2020.  But shippers should monitor and understand the situation.  Shippers must work to hold the carriers accountable.  Carriers must be as transparent as possible in any price rises.

Shippers can push their freight forwarders or shipping lines for details on how the bunker formula is calculated so that shippers get assurance they are only being passed on the costs directly related to IMO2020.

Ships regularly take on sea water, in tanks, to ensure their stability. Known as ballast water, this can contain many aquatic species, including in microscopic or larval form. These can become invasive and harmful if the ballast water is released, unmanaged, in a new location at the end of an ocean voyage.

The International Convention for the Control and Management of Ships’ Ballast Water and Sediments, 2004 (the BWM Convention) was adopted by IMO to address this problem.

The BWM Convention entered into force in 2017. The amendments formalise an implementation schedule to ensure ships manage their ballast water to meet a specified standard (“D-2 standard” – see above) aimed at ensuring that viable organisms are not released into new sea areas, and make mandatory the Code for Approval of Ballast Water Management Systems, which sets out how ballast water management systems used to achieve the D-2 standard have to be assessed and approved.

This will help ensure that aquatic organisms and pathogens are removed or rendered harmless before the ballast water is released into a new location – and avoid the spread of invasive species as well as potentially harmful pathogens.

The amendments to the BWM Convention were adopted in April 2018. In essence, the schedule for implementation means that compliance with the D-2 standard set out in the Convention will be phased-in over time for individual ships, up to 8 September 2024. Over time, more and more ships will be compliant with the D-2 standard. In many cases, meeting the D-2 standard will be achieved through fitting ballast water management systems. There are now many such approved systems on the market, ranging from those which use physical methods such as ultraviolet light to treat the ballast water, to those using active substances (chemicals).
Those that use active substances have to go through a thorough additional approval process.

Other amendments to the BWM Convention entering into force on 13 October 2019 relate to survey and certification. The BWM Convention – D-2 standard The D-2 standard specifies that ships can only discharge ballast water that meets the following criteria:

• less than 10 viable organisms per cubic metre which are greater than or equal to 50 micrometres in minimum dimension;
• less than 10 viable organisms per millilitre which are between 10 micrometres and 50 micrometres in minimum dimension;
• less than 1 colony-forming unit (cfu) per 100 millilitres of Toxicogenic Vibrio cholerae;
• less than 250 cfu per 100 millilitres of Escherichia coli; and
• less than 100 cfu per 100 millilitres of Intestinal Enterococci.

The BWM Convention and the SDGs Implementation of the Ballast Water Management Convention contributes to achieving a number of the United Nations Sustainable Development Goals (SDGs), in particular, SDG 14 on life below water, which calls for sustainable use of the oceans; and SDG 15, which includes targets relating to biodiversity and curtailing the spread of invasive species.

The BWM Convention requirements Since the Convention entered into force in September 2017, ships have been required to manage their ballast water to avoid the transfer of potentially invasive aquatic species. All ships must have a ship-specific ballast water management plan and keep a ballast water record book. Ships are also required to manage their ballast water to meet either the D-1 ballast water exchange standard or
the D-2 performance standard. The amendments in force from 13 October 2019 formalise the implementation schedule for the transition from the D-1 to the D 2 standard.

GIMSCO has strived to be a trusted partner to all its customers and has constantly recorded growth, while building an enviable professionalism and uncompromising quality of service. GIMSCO follows the highest international marine industry standards with an aim to ensure that products and services are always delivered with the correct specification, to the required location worldwide, on time and in the most economical way.

GIMSCO team is always at the forefront in service delivery, they are well trained to act swiftly to meet the exact requirements of its clients worldwide.

GIMSCO services have a global significance and is constantly looking to achieve growth in terms of customer satisfaction and value, while having long term contracts with many ship owners, ship managers and ship operators.

GIMSCO spare parts division deals with marine machinery, equipment and spare parts from most of the makers round the Globe. Through its long-term close relationship with the leading manufacturers, authorized agents, and overseas corporate associates, Gimsco is in a position to supply the appropriate, genuine and directly sourced spare parts to help ensure the long and productive life of the expensive spares and equipment.

GIMSCO technical division offers various support services that can be anything from supplying engineers to supplying divers for underwater investigation, cleaning and repair services.

GIMSCO also acts as procurement agent for various ship owners and ship managers. With a well- established, long-standing relationship with both major and minor suppliers in the industry Gimsco can effectively ensure ultimate value to the end-user and it’s the clients.

Gimsco understands and validates the requirements from the ship owners, ship managers and ship operators in the form of regular requisitions or long-term tender, in order to ensure the best price and availability after thorough negotiation. To ensure the complete service process Gimsco does the follow up of the order until the delivery to the final destination of the end user is completed.

”GIMSCO – Your Perfect Service Partner for marine services”

Ship chandling is the provision of goods and services to ships while they are in port or at anchor. These goods and services can include food and provisions, fuel, spare parts, and technical support. The marine service providers industry is essential for the smooth operation of ships and the maritime industry as a whole.

Gimsco is a leading ship chandling company, providing quality service from 33 years across UAE. We provide a wide range of goods and services to ships that are passing through the region. We are committed to managing ships, focusing on safety, and our board maintenance is also fairly reasonable. GIMSCO provides flexible and quick ship supply and support services, making us the most preferred ship chandling and marine services company in the UAE.

There are many marine service providers in the UAE that specialize in ship chandling. These companies have the expertise and experience to meet the needs of ships and their crews. What makes Gimsco stand apart from all the companies is the commitment and quick service.

Why Gimsco?

Choose us as your ship chandling partner and experience the difference in service and quality. With more than 3 decades of experience in the industry, we understand the unique needs of vessels and their crew. Our team of dedicated professionals is committed to providing efficient and reliable services to ensure that your ship is well-stocked and ready to set sail. We offer competitive pricing, timely delivery, and a wide range of products to meet all of your ship chandling needs. Trust us to keep your ship running smoothly and your crew well-supplied. Our staff curates fast and flexible shipping supplies and seamless logistics requirements for clients, dealing only with quality products.

We care for your business

At Gimsco, we understand that your vessel is more than just a mode of transportation – it’s a crucial asset to your business. That’s why we take pride in providing ship spare parts and top-notch marine service to you. We are leading ship suppliers in UAE. Gimsco provide latest spare parts and equipment for efficient and cost-effective solutions. Trust us to keep your vessel running smoothly and safely, so you can focus on your business.

We look forward to provide you the quality of service for your vessel.

GIMSCO – Your Perfect Service Partner for marine services [Email @gimsco@emirates.net.ae]

As for why Gulf International Marine Services Co is the best ship chandling company in the UAE, that would depend on a variety of factors such as the quality and availability of supplies and services, their reputation in the industry, customer satisfaction, and their overall competitiveness. Without further context or information, it is not possible to determine the relative superiority of Gulf International Marine Services Co compared to other ship chandling companies in the UAE.

One of GIMSCO’s main areas of expertise is ship chandling. The company provides a wide range of supplies and services to ships, including provisions, bonded stores, deck and engine stores, and laundry services. GIMSCO’s experienced team of professionals works closely with customers to understand their specific needs and provide tailored solutions to meet their requirements. The company’s extensive network of suppliers and partnerships with leading manufacturers ensures that its customers receive the highest quality products at competitive prices.

GIMSCO is committed to providing its customers with the highest level of customer service. The company’s dedicated customer service team is available 24/7 to answer any questions and address any concerns. GIMSCO understands that time is of the essence in the maritime industry, and it works hard to ensure that its customers receive the services and supplies they need as quickly and efficiently as possible.