Gunvor predicts wide high/low sulphur price spread post-2020

In the opinion of trading house Gunvor a wide price gap between high sulphur and low sulphur bunker fuel will result from the new regulations for sulphur in 2020. As Torbjorn Tornqvist, oil trader’s CEO, mentioned recently that ship owners would naturally tend to opt for distillate fuel with a consequent fall in aggregate demand for high sulphur fuel oil in 2020.

Read more here: Ship & Bunker

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?

2020: Time for Shipping Companies to consider a new Fuel Procurement strategy

Certain shipping companies, especially the larger ones, are better at understanding their exposure, most however just seek the best price of the day. To overcome this shortfall, almost all rely on traders who, through their global networks, provide access to information on pricing, quality and availability. Less than a handful offer strategic insight, quality control and risk management. The unregulated infrastructure of the marine fuels market has made the need for traders essential. Unfortunately, there are too many traders and only a few deliver true value in what is an ongoing stagnant market where sustained low prices have kept marginal traders in the mix.