SK Trading International has inked six-month contracts with shippers for the supply of very low sulphur fuel oil (VLSFO), beginning from the fourth quarter, according to a company official. VLSFO is considered as an economically attractive option for the shipping industry, in spite of expectations of higher demand for marine gasoil.
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.
A number of shipping, refining, fuel supply and standards organisations have collaborated in order to produce Joint Industry Guidance on the supply and use of 0.50% sulphur marine fuel released on 20 August 2019. The guidance presents a comprehensive set of responsibilities, that several actors across the shipping industry have and must adhere to.
In order to help shipping companies comply with the 2020 sulphur cap, Neste announced that it is offering a new IMO 2020-compliant marine fuel. The Neste Marine 0.5 contains maximum 0.5% sulphur, and it will be introduced to the market during the fourth quarter of 2019.
With discussion and reporting about the IMO 2020 sulphur cap regulation, entering into effect January 1st 2020, AAL Shipping informed that it will use of low sulphur fuel, in order to comply with the 2020 sulphur cap. These measures will come into effect from September 1st 2019.
With many uncertainties still surrounding the global fuel sulphur cap, which takes effect on 1 January 2020, North P&I Club decided to update its 2020 fuel sulphur cap guidance after recent developments. The Club’s ‘Preparing for the Big Switch’ guides have been updated following the clarification on regulation and compliance from the IMO meeting at MEPC 74.
During the inaugural Hellenic American Maritime Forum in Athens, Dr. Khorshed Alam, COO, Viswa Group, talked about the sulphur 2020 options and alternatives, explaining how these solutions can be implemented, as well as what challenges are possible to occur.
Oil traders are chartering more ships, while they are are trying to find fuel oil storage tanks in and around Singapore, the world’s top bunkering port, aiming to ensure compliance with the upcoming 2020 sulphur cap. This move has increased lease rates for tank storage in Singapore, as well as the number of supertankers floating in Singapore and Malaysian waters.
During the 2019 Hellenic American Maritime Forum in Athens, Mr. Panos Kourkountis, Technical Director, Sea Traders SA, focused on 2020 sulphur cap and the operators’ perspective regarding the GHG emission reduction. He noted that unless safe, cheap and CO2 free fuel is made available in the near future, the shipping industry must implement a combination of emissions reduction measures to achieve 2030 and 2050 goals.
Reuters reports that Taiwanese and South Korean refineries are testing the market for fuels, that are compliant with IMO’s sulphur cap, starting next year, by exporting cargoes of very low-sulphur fuel oil (VLSFO). For the time being, refiners have a hard time deciding on which fuel to produce due to the fact that shipowners are able to choose between LSFO or MGO to comply with IMO’s 2020 sulphur regulations.
