Maersk Bunker Fuel and Trucking Revenue | Weekly News Update

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Maersk to Produce 0.5 percent Sulfur Fuel Blend

As the International Maritime Organization (IMO) sulfur mandate approaches, Maersk is partnering with Royal Vopak, a tank storage firm, to produce a bunker fuel that complies with the IMO sulfur mandate that will go into effect in the beginning of 2020.  The mandate will drop the sulfur limit allowed in bunker fuel burned on a marine vessel from 3.5 percent down to 0.5 percent.  The mandate forces marine vessels to either use lower-sulfur fuel, install scrubbers to clean the higher-sulfur fuel, or switch to an alternative energy source like liquified natural gas (LNG).

Maersk, with the help from Vopak, will produce their own version of a 0.5 percent sulfur blended fuel.  The Rotterdam-based operation will produce and supply about 20 percent of Maersk’s global demand for the cleaner, less sulfur-intensive bunker fuel.  They plan to do this by purchasing blend stocks from refiners rather than buying the actual finished products.  Vopak plans to convert their Europort terminal to support the operation and will plan to deliver 2.3 million metric tons per year.

Trucking Industry Revenue Topped $700 Billion in 2017

According to the American Trucking Association (ATA), the trucking industry generated $700.3 billion in economic activity in 2017, which is a 3.5 percent increase compared to 2016.  These numbers were released in the American Trucking Trends 2018 report.  Trucking moved a total of 10.77 billion tons of freight in 2017.  The report also showed that trucking accounts for moving 69.1 percent of all trade between the US and Mexico and 57.7 percent of all US-Canada trade.  ATA president and CEO Chris Spear said, “trucking is literally the driving force behind our great economy.”  Jobs related to trucking employed about 7.7 million people last year, including 3.5 million drivers.  The increase in freight year-to-year is mainly supported by strong economic demand.

In Other News

8/20

CCJ: Strong Order Numbers Putting More Clean Diesel Trucks on the Road

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Ship & Bunker: Maersk, Vopak to Launch 0.5%S Bunkering Operation in Rotterdam

A.P. Moller Maersk and Royal Vopak announced they will partner to launch a 0.5 percent sulfur bunker supply operation in Rotterdam. Vopak has previously hinted at such engagements in its 1H 2018 earnings call, when the bunker supplier mentioned customer commitments beginning in mid-2019.  Also see, Shipping Company Maersk May Produce Own 0.5% Sulfur Bunker Fuel Blend

Reuters: China Shifts to Iranian Tankers to Keep Oil Flowing Amid US Sanctions

Chinese buyers of Iranian oil are starting to shift their cargoes to vessels owned by National Iranian Tanker Co (NITC) for nearly all their imports to keep supply flowing amid the re-imposition of economic sanctions by the United States.

Transport Topics: Trucking Industry Revenue Topped $700 Billion in 2017, ATA Report Shows

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Houston Chronicle: For first time, crude exports exceed imports along Texas’ Gulf Coast

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8/21

Bloomberg: Trump Proposes Unwinding Obama’s Coal Plant Pollution Curbs

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FreightWaves: Uber Freight Launches Solution for Shippers to Speed Load Tendering Process

More than a year after it built a large following through its app for drivers, Uber Freight is now turning the spotlight on shippers. The company today announced the launch of Uber Freight for Shippers, a desktop-based app platform that provides direct access to carriers and more transparency into shipments.

FreightWaves: FMCSA to Open Debate on HOS Regulations

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CCJ: J.B. Hunt Creates Discount Program for Carrier

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Bloomberg: Surging Demand for Electric Vehicles

Global sales of electric vehicles cracked the 400,000 barriers in the second quarter, rising 77 percent from a year earlier to 411,000, according to a report from Bloomberg NEF. China, with 225,000 units, not only maintained its lead but outsold the rest of the world combined. Europe accounted for 22 percent of EV sales in the quarter, with North America at 19 percent.

8/22

WSJ: Mexico’s López Obrador to Halt Oil Auctions for Two Years

Mexican President-elect Andrés Manuel López Obrador will hold off auctioning any new oil blocks for at least two years and plans to modify laws to bolster the dominant role of state oil company Petróleos Mexicanos, according to two people with knowledge of the situation.

Reuters: Canada’s ultra-cheap natural gas drives hopes of petrochemical boom

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ACT News: The Truth about Nat Gas Tractors

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8/23

Transport Topics: US, China Raise Tariffs in New Round of Trade Dispute

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WSJ: Saudi Arabia Denies Aramco IPO Is Canceled

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8/24

FreightWaves: Today’s Pickup: Ports of LA and Long Beach Reduce Emissions Even as Cargo Volume Shows Record Growth

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This weekly publication is designed to highlight relevant industry news to provide professionals in the transportation, supply chain, and energy sectors with up-to-date information in a rapidly changing marketplace. This update is purely a compilation of industry news and as such, does not necessarily reflect the opinion of Breakthrough. We do not warrant or guarantee accuracy or completeness of information. For additional information, please contact us at info@breakthroughfuel.com.

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