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Rising Demand for Alternative Fuels to Spur the Global Methanol Market

methanol market

Rising Demand for Alternative Fuels to Spur the Global Methanol Market

IndexBox has just published a new report: ‘World – Methanol (Methyl Alcohol) – Market Analysis, Forecast, Size, Trends, and Insights.’ Here is a summary of the report’s key findings.

In January 2021, the U.S. reentered in the Paris Agreement aimed at reducing global greenhouse gas emissions. New environmental agenda in the U.S. and European countries can boost the global energy market’s transformation in the medium term. Attention is currently paid to the potential for world industry and transport to switch to environmentally friendly fuels.

The global methanol market is estimated at approx. 82M tonnes, equating near $32B (IndexBox estimates). The use of methanol as an alternative fuel is in line with the new global green agenda and can become a new driver of the methanol market. As compared to traditional fuels, methanol has some advantages: it doesn’t emit nitrogen and sulfur oxides when being combusted, and there are many raw materials, including renewable ones, which could be used for the methanol manufacturing process.

In November 2020, the Maritime Safety Committee of the International Maritime Organization (IMO) adopted interim guidelines on methanol as a marine fuel. Afterward, in January 2021, the American Bureau of Shipping published guidelines on methanol as a marine fuel. One of the global leaders in maritime transportation, the Maersk Line, has announced a strategy to convert its vessels to run on environmentally friendly fuels. Maersk regards methanol for this purpose as a suitable option.

The authorities of China, the country with the largest motor vehicle fleet globally, are seriously considering the possibility of setting up cars to run on methanol fuel. Since 2012, they conducted a pilot program, during which over 1K methanol-powered vehicles had been tested, several methanol filling stations had been built, and some new standards for methanol had been developed.

Today, China is the world’s largest importer of methanol, comprising 28% of total shipments. Over the past 7 years, its imports have grown by an average of 7 percent per year, reaching 8 million tonnes (IndexBox estimates). The announced plans to use methanol as fuel could accelerate already impressive growth.

This trend is expected to be relevant also for other major importers. Global methanol imports are estimated at near 28M tonnes, which equated to $9.1B. India (2.3M tonnes) occupied the second position in the ranking of top methanol importers, followed by South Korea (1.8M tonnes), Japan (1.7M tonnes), Germany (1.4M tonnes), and Taiwan (Chinese) (1.3M tonnes). All these countries together held a 30% share of total imports. The following importers – Brazil (1,192K tonnes), Indonesia (902K tonnes), Thailand (764K tonnes), the Netherlands (720K tonnes), Malaysia (686K tonnes), Poland (654K tonnes), and Singapore (608K tonnes) – together made up 20% of total imports.

Source: IndexBox AI Platform

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HONG KONG SEAPORT ALLIANCE WELCOMES THE WORLD’S LARGEST CONTAINER VESSEL

Despite the political turmoil gripping Hong Kong, the Hong Kong Seaport Alliance (HKSPA) welcomed HMM GDANSK, the world’s largest container vessel, on its July 12 maiden call to Hong Kong at Kwai Tsing Container Terminal 7.

HMM GDANSK , which is one of the twelve 24,000-TEU class of mega vessels of HMM Co., Ltd., the vessel features a length of 1,312 feet, a width of nearly 201 feet and a maximum capacity of 23,964 TEU. Since June, the vessel has operated THE Alliance Far East Europe 3 service that connects major ports in China, Asia and Europe.

“We are excited to welcome the world’s biggest vessel on its maiden call at such challenging times,” said Leonard Fung, managing director of Hongkong International Terminals (HIT), upon the HMM GDANSK’s arrival.

“This is a momentous event for Hong Kong’s maritime industry and HIT, signifying a vote of confidence in our offering and allowing us to capture future opportunities.”

The vessel is billed as being equipped with the world’s most advanced DS4 (DSME Smart Ship Platform), ECDIS (Electronic Chart Display and Information System), monitoring system and smart navigation system. In response to the new International Maritime Organization’s environmental regulations, HMM GDANSK has installed scrubbers to reduce its sulfur emissions.

vessels PIT

Vessels for Life: Here are the Ships that Make Our Lives more Livable

It’s amazing how interconnected we are as a world—from delivering goods along the supply chain to your local grocery store to the social distancing that has helped to control what we’ll unlovingly refer to as “The Outbreak.” As much as it can be sometimes difficult to be connected, it is this interconnectedness that also allows us to subsist in our day-to-day lives. Toilet paper, cars, and even oil are goods that we can access thanks to the Svengali-esque magic—or organization, rather—of the global supply chain. One could say that it, in fact, makes the world go ‘round.

So today, we’d like to introduce some of the power players in this arena, the unsung voices that help us to have access to different goods each and every day. And these unsung voices are ships, the carriers that are key to our worldwide supply chains.

What follows are five major carriers and eight individual vessels that play an important role in shipping vehicles, cargo containers for manufacturers and other goods and equipment of all sizes that make our lives more livable each day.

MSC Gülsün (MSC)

The MSC Gülsün is a ship in the fleet of the Mediterranean Shipping Co. (MSC), a world leader in container shipping. The MSC Gülsün is the largest container ship in the world, with a max capacity of more than 23,000 TEUs. (Try that on for size!) It has more than 2,000 refrigerated containers; a hybrid exhaust gas cleaning system; a dual-tower firefighting system; 35 cabins; and double-hull protection.

The MSC Gülsün also has an eye for sustainability, increasing the efficiency of the CO2 emitted by 48 percent. With a hybrid exhaust gas cleaning system (EGCS), this ship is also self-cleaning. The vessel can carry 8 million solar panels, more than 47,500 cars, 223 million bananas, nearly 3 million washing machines and 386 million pairs of shoes, MSC boasts.

The ship was built in South Korea at Samsung Heavy Industries. The MSC Gülsün is 400 meters long and 60 meters wide. Despite its size, its engineering reduces resistance from the wind, which leads to lower fuel consumption.

Venus Leader (NYK Line)

The Venus Leader is a vehicle carrier with the Nippon Yusen Kaisha (NYK) Line, a global shipping and logistics company. The roll-on/roll-off (ro-ro) division of NYK is the largest worldwide. Built in 2010, the Venus Leader sails under the Japanese flag. It carries up to 15,301 t DWT (tanker deadweight tonnage). Her draught is 7.1 meters. The Venus Leader has a length of 186.03 meters and is 28.2 meters wide.

The NYK line has a fleet of 118, which carries more than 3.4 million cars each year. In addition to cars, the NYK ro-ro division also carries agricultural machinery, plant equipment and specialty cargos such as boilers, transformers and yachts. The company has sustainability goals. For instance, by 2050, it aims to have a zero-emissions ship, the NYK Super Eco Ship.

M/V Liberty (ARC)

The M/V Topeka was re-flagged to American registry and re-named the M/V Liberty on Jan. 31, 2017, to be consistent with the practice of owner American Roll-on Roll-Off Carrier (ARC) to name its ships after American values. M/V Liberty is now among the most capable and militarily-useful vessels in the U.S.-flag commercial fleet, able to carry tracked vehicles, helicopters, trucks, and other military and high and heavy project cargoes. The vessel is 199.99 meters long with a beam of 32.26 meters, a stern opening of 15.2 meters wide and 5.4 meters high, and a stern ramp rated for cargo up to 237 metric tons.

Vessels in the ARC fleet are known for their ramp access and system optimization, which helps with quick reconfiguration that allows for maximum lift capacity. That explains why, besides military cargo, ARC ships carry commercial breakbulk as well as agricultural and construction equipment for developing countries. Considering itself one of one part of its partners’ supply chains, ARC also works with the warehousing capabilities of other countries.

Actuaria, ACX Crystal, ACX Diamond (ONE)

The top three vessels with Ocean Network Express (ONE), based on TEUs, are the Actuaria, ACX Crystal and ACX Diamond. Built in 2009, the Actuaria holds up to 6,589 TEUs and flies under the Portugal flag. Built in 2008, the ACX Crystal carries up to 2,858 TEUs and flies the Panama flag. And built in 2008, the ACX Diamond can handle 2,858 TEUs and flies the flag of Singapore. They are but three of 225 vessels in ONE fleet that travels to more than 120 countries and can handle a total of more than 1.5 million TEUs.

The sixth-largest carrier worldwide as of January 2020, ONE operates under four core values: “Lean & Agile” to be a new definition of what a new reality can be; “Teamwork” that builds new value; “Best Practice” through the collaboration of its partners; and “Challenge” that takes strengths to face challenges without being afraid to fail.

Magleby Maersk and Munich Maersk (Maersk)

Two of the biggest ships of Maersk—the Denmark-based logistics giant—are the Munich Maersk and the Magleby Maersk. The Munich Maersk, which has a TEUs capacity of 19,630, was built in 2017 and sails under Denmark’s flag. It has a draught of 7.1 meters with an overall length of 399 meters and a 58.6-meter width.

The Magleby Maersk, which can handle up to18,270 TEUs, is 398 meters long, 33 meters deep and 73 meters high. Built in the Daewoo Shipbuilding and Marine Engineering shipyard, the ship is engineered with two low-revolution and two long-stroke engines. Each packs 9,785 horsepower. According to Vessel Tracking, Maersk operates 538 container ships, which can ship more than 3 million TEUs.

In short, these are a handful of ships that are making waves in transportation and logistics, playing a major role in moving the goods that keep us going each day. Onward!

Sea Explorer Supports Shippers and Emission Regulations

Container ship emissions and fuel regulations must also be considered when selecting the best option in digitization. Effective January 1, 2020, the International Maritime Organization (IMO) will require a 0.5 percent global Sulphur cap on fuel content. With less than a year to prepare, shippers and carriers are encouraged to consider options that integrate digitization and compliance support to avoid redundancies, financial waste and issues with compliance.

Kuehne + Nagel, a global leader in supply chain solutions,  announced the expansion of its ocean freight platform Sea Explorer, a digitally rooted service network that bridges the gap between more than 1,200 international ports using its advanced algorithm. Expansion efforts will come in the form of adding capabilities with service connections and transshipments. It was reported that more than 63,000 port pairs and key inland locations across the globe are connected to weekly services or transshipment options.

“This extension takes Sea Explorer to the next level and complements Kuehne and Nagel’s intelligent sea freight offering; it is the smart platform for all liner services in container shipping,” says Otto Schacht, member of the Managing Board of Kuehne + Nagel International AG. “With powerful features, like comparing realistic lead times for direct services and an intuitive navigation, customers will be able to unlock new opportunities for their day-to-day operations.”

“This marks the first time a platform provides full visibility on CO2 emissions across carrier and individual services”, according to Schacht.

“Also, in the light of the upcoming IMO 2020 regulations, this will enable shippers to contribute toward a green economy and sustainable global maritime transportation,” he adds. “Kuehne and Nagel leverages big data technology capabilities and information from the operational system to grant unique insights to sea transport options.”

 

IMO’s 2020 Global Sulphur Cap: Industry Leaders Urge Proactive Preparations

As we approach the second month of 2019, global maritime industry experts continue to stress the importance of proactive preparations for the IMO’s 2020 global 0.5% fuel sulphur content
cap regulation effective January 1, 2020.

More recently, the CEO Aderco – a global leader in maritime fuel treatment solutions, urged others in the industry to carefully consider how much time is realistically left to thoroughly prepare. With less than a year left until the regulation is implemented, proactive preparations can eliminate avoidable fines and disrupted operations.

“The IMO sulphur cap starts on January 1 2020, but in reality the planning for compliance is just over a month away. By this March ship owners, ship managers and operators need to be lining up their treatments in preparation for the end of 2019 when they will be bunkering the new fuels.”

“Despite the recent highly publicized bans on open-loop scrubbers, fuel treatment remains the most cost-effective and simplest way to address compliance, as well as providing an extra bonus of helping to protect your marine diesel engines. In this vital run-up to the cap, flushing and cleaning of tanks prior to bunkering new fuel is the most imperative of the tasks needed to be tackled. Even the slightest amount of high-sulphur fuel remaining in the tank will mean non-compliance. Using fuel treatment from our recommended date of June this year should provide the necessary flushing and cleaning ready for the new fuel.”

“We have been advising our customers that compliance with the cap starts in the fuel tank and that now is the time to really start preparing for IMO 2020. With our fuel treatment solution, ship owners, ship managers and operators can rely on this proven method without having to worry about costly dry-docking or any off-hire. Our concern is that there will be some ships reaching the end of 2019 without being ready for the new fuels. The simplest and most cost-effective method is a fuel treatment.”

“With a strong focus likely to be on the shipping world and policing by Port State Control in the early part of 2020 for anyone not adhering to the new rules, the chances are that some will find themselves on the end of hefty fines and detentions for non-compliance. When all it takes is the addition of a fuel treatment it seems a small price to pay for peace of mind and operational efficiency.”

Source: Aderco