Monjasa, the Danish bunkering expert, acquired four new banks in 2019, while increasing its credit facilities by an additional total of USD 160 million, amid preparations of the upcoming 2020 sulphur cap.
2020 sulphur cap
As the IMO’s 2020 Sulphur Cap is approaching, Hapag Lloyd is taking steps towards the ultimate compliance with the new regulations, introducing an IMO2020 Transition Charge (ITC) for short-term contracts as of 1 December 2019.
Drewry and the European Shippers’ Council launch a bunker adjustment factor mechanism and bunker charge guide to help shippers monitor and control bunker charges as shipping lines switch to the more expensive bunkers required under the IMO 2020 low-sulphur regulation.
French shipping major, CMA CGM, announced that in light of the upcoming 2020 sulphur cap it will be compliant, providing a mix of three solutions, using compliant fuels with 0.50% or 0.10% sulphur, while it will also apply a new surcharge.
Belgian tanker shipping company, Euronav, published its second quarter and first half of 2019 results. Euronav’s CEO, Hugo De Stoop, reported that they took a loan to assist the company better-prepare for the approaching IMO’s 2020 sulphur cap.
KPI Oil Bridge is waiting for the new sulphur regulations that will come into effect in 2020, as Søren Høll, CEO of KPI Bridge Oil, confirmed the company’s readiness for the expected changes. They anticipate a price increase of 30-40% depending on the region and local availability, while they also expect to experience a shortage of available credit in the market.
WoodMac’s experts focused on the approaching IMO 2020 and the impacts it could possibly have beyond refining and shipping. Research director Sushant Gupta marks that the industry should expect wider light-heavy and sweet-sour crude price differentials.
The US Federal Maritime Commission (FMC) will continue paying attention on the way that ocean carriers pass on additional fuels costs that have occurred due to IMO’s 2020 sulphur cap. The regulation could increase fuel costs by as much as one third. FMC is mainly aiming to make sure that ocean carrier bunker charge adjustment formulas are clear and definite, FMC Chairman Michael Khouri informed.
As Reuters reports, prices for Australian heavy-sweet crude grades are increasing since traders rush to gain cargoes for blending ahead of new rules on shipping fuel, placing them among the most expensive crudes in the world.
TORM, a Danish shipping company, stated that IMO sulphur cap will result to an incremental increase in product tanker trade during 2019 and 2020. The 0.5% sulphur regulation and the alter to marine fuel consumption will conclude to higher trade volumes of clean petroleum products, which will benefit the product tanker market.
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