Maersk enters into deal for low-sulfur fuel

Philadelphia-area company will supply fuel equal to about 10 percent of Maersk’s needs    A.P. Møller – Maersk said it had signed an agreement to source low-sulfur fuel from PBF Logistics as part of its plan to comply with the International Maritime Organization requirement that ships use fuel with a maximum sulfur content of 0.5 percent globally starting next year or equip their ships with scrubbers to remove sulfur from engine exhaust.
   The deal will allow Maersk Oil Trading to obtain around 1.25 million metric tons annually from  PBFs terminal at CPI Operations LLC on Delaware River South of New Jersey. PBF Logistics acquired CPI Operations LLC from Crown Point International on Oct. 1. The 1.25 million metric tons is about 10 percent of A.P. Møller – Maersk’s annual fuel demand.
   “This processing agreement forms a cornerstone in Maersk’s fuel sourcing strategy for the IMO 2020 sulphur cap,” said Niels Henrik Lindegaard, head of Maersk Oil Trading. “The vast majority of our fleet will comply with the regulation through use of compliant low-sulfur fuels. “With the capability to produce and store compliant low-sulfur fuel on the U.S. East Coast, we take control of the fuel supply in a key maritime hub for us. We will continue our drive to ensure compliance in all geographies come 2020.
   In August, Maersk and Vopak announced a leasing agreement for storage of 2.3 million metric tons of 0.5 percent compliant fuel, equivalent of approximately 20 percent of Maersk’s annual fuel demand, at the Vopak Europoort Terminal in Rotterdam.
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Chris Dupin

Chris Dupin has written about trade and transportation and other business subjects for a variety of publications before joining American Shipper and Freightwaves.