Not only remains uncertainty around the regulatory implementation of the global sulphur cap but also concerns regarding the low sulphur fuel availability in 2020 as highlighted during the Greener Shipping Summit 2017 in Athens, Greece. Kostas Vlachos, COO of Spiros Latsis-backed Consolidated Marine Management said that the changeover cannot occur “overnight” without serious economic consequences. “All stakeholders, regulators, refineries, owners, associations, makers and states, have to play a very important and critical role for the effective, efficient and soft implementation.”
Read more here: Seatrade Maritime
Article from Seanews.co.uk
There are only two years and two month left until IMO’s global sulphur cap comes into force. Much has been discussed over the last months but still there are some open questions. Here is a good article to read in order to get an understanding of the current issues.
Will the new regulations of IMO’s sulphur cap 2020 be an opportunity or a disaster? According to CEO of commodities trader Vitol there is no clear answer to that question. The majority of carries and other parties still have not decided what to do regarding how to comply with the regulations. What part will the use of scrubbers play and will they have a significant effect on the outcome?
Read more here: ShippingWatch
There has been quite an uncertainty around the shipping industry considering how to deal with the low sulphur directive. Hyundai Merchant Marine president and CEO C.K. Yoo claimed the IMO’s 0.5% sulphur cap for bunker fuels “to be the most serious one in magnitude” out of the several regulations which have either entered into or are set to come into force. Speaking at the TPM Asia 2017 event held in Shenzhen, China, Yoo also outlined the benefits and detriments of compliant options, including low-sulphur fuel oil, burning heavy fuel oil in conjunction with a scrubber and LNG.
Read more here: Bunkerspot
The global sulphur cap for 2020 is coming closer. Therefore, not surprisingly, shipping news sites have been and will be focussing more and more on the impact of the directive on the marine industry. Only this week there have been more than 25 stories concerning the sulphur cap. The stories covered a range of topics including further consolidation in the bunker industry, the technology of scrubbers, uncertainty in the industry and noncompliance were discussed.
Consolidation. As tightening emissions regulations impose greater costs and test credit lines, the bunker industry can expect to undergo further consolidation in preliminary stage to 2020, according to global supplier Bomin Group. Smaller bunker traders could, as a consequence, be devoured by larger players across the industry as the increase in costs for fuel will put pressure on credit conditions across both the bunker and shipping industries.
Scrubbers. Another frequent topic this week was scrubbers. Although using scrubbers would be one solution for meeting the requirements of lower sulphur emission standards, at this point in time, only around 500 ships have installed scrubbers. Also featuring this was a story this week on a survey by ExxonMobil which revealed that many vessel operators are insecure in selecting the best route to comply with the 2020 0.5% global fuel sulphur limit set by the IMO. Results showed that 68% of the respondents believed the marine sector is not ready for the deadline. The future for the marine industry might be multi-fuel and it will be vital for operators and fuel suppliers to work closely, according to Iain White, Global Marine Marketing Manager at ExxonMobil.
Cheating. As there are still a huge number of ship operators that have not made up their mind about how best to comply with the upcoming low sulphur regulations, the possibility of cheating and ignoring the rules completely should be not underestimated. Especially in times where currently there are no solutions in place to enable authorities to find cheating ships, the issue is becoming urgent. But Norway might be meeting these concerns by presenting an IMO proposal introducing a ban against fuel that does not comply with the directive.
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