From 1 January 2020, shipping companies will be required by the International Maritime Organization (IMO) to burn fuels with less than 0.5% sulfur content, a sharp reduction from the current 3.5% sulfur limit in place since 2012.
With less than two years to the deadline, the response of ship owners regarding bunker fuel strategy remains uncertain, with the industry generally adopting a wait and see approach. The general expectation is that shippers will opt for more expensive lower-sulfur fuels including marine gasoil, low-sulfur fuel oil or new blends of various refined products – although blended products have yet to be tested to be fully compliant and commercially viable (MEES, 4 November 2016). But ship owners are worried among other concerns, that compliant fuels may not be available on a regional or local level, especially if there are supply problems or in the event of price hikes post-2020. (CONTINUED - 1188 WORDS)
