One of the world’s leading oil companies has challenged the view that after 2020 comes into force the world will be dominated by distillate fuels. There is growing pressure on the bunkering and refining sectors to outline what will be the scenarios as the new cap comes in. We have been looking at this over the past few months. What is even more important to consider with less than two years to go is how many operators will be prepared for 2020 in 2019, which should be the real deadline to have prepared tanks ready for the ‘new fuels.’
Sulphur 2020 the debate is hotting up
The real deadline for the sulfur 2020 cap is last quarter 2019 so make sure you are compliant.
This is a great read because it highlights the ongoing concerns the industry has about bunker fuel in the run up to 2019.
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Already facing higher fuel costs, ocean carriers could now be hit by a rise in charter hire rates.
Container shipping lines are being obliged to pay higher daily hire rates for chartered vessels as the availability of tonnage falls to a new low.
Speaking during Maersk Group’s 2017 Q4 earnings call last week, Maersk Line COO Soren Toft conceded that shipowners were finally beginning to regain the upper hand in charter party negotiations.
“We are seeing some pressure on the time charter rates, mainly as a result of the idle fleet being low,” he said.
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We will instead opt for replacing the cheaper bunker oil with fuels with a lower sulphur content, the company says. The first of the main shipping lines to make a clear statement on this. What are your thoughts?
The International Maritime Organisation has set the global sulphur ban to begin on 1 January 2020 but there are suggestions and concerns it could be fast-tracked in one way or another. It could be as early as 1 Jan 2019, so lines really need to think about how they are going to comply.