2020 noncompliance may play an important role in the industry’s response to new regs

Whilst much has been said about shifting to buying low sulphur bunker oil, investing in emissions-cleaning technology or alternative fuels – there are several options for shippers to deal with the upcoming regulations of sulphur 2020 cap.

But there is an optioned that isn’t really being addressed and should not be underestimated that is cheating and ignoring the rules entirely, according to a report from the Center of Global Energy Policy. Latter is becoming an urgent issue as there are currently no solutions in place enabling authorities to monitor these ships. The report also indicates that larger companies are less likely to choose noncompliance than smaller operators.

Read more here: Ship & Bunker
Find the full report here: Center of Global Energy Policy


Where do you think will be the biggest risk for noncompliance?



Another view on sulphur 2020:

The global sulphur cap goes a long way to cut harmful emissions but will not be as transformative for the shipping industry nor as disruptive for oil markets as might be excepted.

Industy consolidation and shipping innovation have already unlocked substantial fuel savings that are poorly captured in statistics. With the digitalization set to further reduce the oil intensity of shipping, oil demand growth from the marine sector will likely remain below forecast, which will help blunt the effect of the global cap.

Postponing the rules, as some have advised, would not necessarily give industry more time to prepare. The wait-and-see approach taken by many shipowners is a cautious and rational response to market risks, compounded by potential feedback effects and regulatory uncertainty.