MARPOL Annex VI sets the reduction of the global sulphur limit from the current 3.5% to 0.5% which will come into effect from January 1, 2020; Following, local bunker suppliers can follow specific steps, ‘best practices’, to ensure effective implementation and enforcement of statutory requirements of the MARPOL Annex VI.
During the London International Shipping Week, IMO’s Secretary-General, Kitack Lim, highlighted the need make zero-emission ships more commercially attractive, adding that the 2050 GHG goals can not be achieved by only using fossil fuels.
In light of the approaching 2020 sulphur cap, which sees vessels using fuel containing up to 0.5% sulphur, Maersk’s Jacob A. Sterling tweeted that the cost of compliance will increase. Thus, Maersk issues a new Environmental Fuel Fee, and updates the existing Bunker Adjustment Factor.
During the London International Shipping Week major stakeholders of the shipping industry such as BIMCO, ICS, and INTERTANKO, discussed about the future of shipping, focusing on the preparations of the implementation of the 2020 sulphur cap, while also discussing the 2050 target on reducing shipping emissions.
Reuters reports that Japanese third-largest refiner, Cosmo Oil, is building stocks of very low sulphur fuel oil (VLSFO) that can be supplied to domestic marine fuel markets from October ahead of IMO 2020 sulphur cap. Cosmo Oil produces VLSFO at its residue desulfurizer (RDS) unit at its Chiba refinery near Tokyo to build stocks.
Inmarsat launched the ‘Trade 2.0: How Startups are driving the next generation of maritime trade’ report examining how startups in line with the technological development such as big data, AI and blockchain in the maritime industry, are bringing a new era and create a ShipTech market.
With the official starting date for the global sulphur cap 2020 only a few months away, ship owners and technical managers are still left with a number of issues to resolve. While many owners have decided to install scrubbers already at this stage, the majority opted to switch from HFO to compliant fuels.
The effect of new IMO 2020 regulations will be one of the key three essential factors expected to determine the direction of the oil price next year, according to research firm Rystad Energy. A balanced oil market in 2020 is contingent also on a no-global-recession and continued OPEC production cuts.
The Hindu Business Line reports that an Indian official stated that India is thinking of not imposing the IMO 2020 sulphur regulations in its domestic waters, following the example that was firstly set by Indonesia, who then backed out.
Maersk Oil Trading and Dutch storage company Koole Terminals announced the signing of an agreement to produce IMO 2020-compliant bunker fuel. The production will take place at the Petrochemical Industrial Distillation (PID) unit, located at Koole’s Botlek site in the Port of Rotterdam.
