Tackling 2020: the impact of the IMO and how shipowners can deal with tighter sulfur limits
This special report from S&P and Platts documents the issues for ocean carriers, and the strategies they might employ. The report is detailed and interesting, and important reading for shipping executives.
Ocean shippers will be more tightly coupled into world petroleum markets, and their prices will be more volatile and depend on other supplies and demands, more so than before. There’s potential for the supply of proper bunkers and its location to alter trade routes and even the profitability of some export trades, especially in agricultural products.
And the strategies ocean shipping owners can use are limited; they include noncompliance, too, which may get them in a lot of trouble, but would save a lot of money in upfront expense for scrubbers, new ships, or for a specialized fuel rather than MDO.
The report is well worth a read. You have to register to get it, but it’s free.
The International Maritime Organization’s decision to tighten sulfur limits on bunker fuel has left shipowners with a dilemma they continue to brush aside. S&P Global Platts weighs up the options and the implications for the shipping industry, the market and refiners as the 2020 deadline approaches.