Low sulphur fuel to cost box ship industry US$34Bn

Thu 29 Mar 2018 by Rebecca Moore


Great article by Rebecca on the current situation, highlights from the article are below

A blog by S&P Global Platts said that if the global container fleet, which burns around 100M tonnes of fuel annually, was to switch from 3.5% IFO 380 fuel to compliant marine gasoil the extra bunker costs would be US$34Bn a year, based on the current price of gasoil futures in 2020.

This is a large issue for container shipowners given the 2020 low sulphur fuel deadline. But according to a whitepaper published by Swedish financial services group SEB, less than 2,000 ships out of the global box fleet of 60,000 are expected to have a scrubber system installed by 1 January 2020.This equates to a tiny 3.3% of the global fleet.

Read the full article here.