Friday, 22 February 2019 16:26

Enough low-sulfur fuel at US ports come 2020?

549 bunker


Concerns have been raised over the availability of low sulphur fuel, once we reach the IMO’s January 1, 2020 deadline. IHS Markit energy analysts warn that the refining and shipping industries are not ready for the mandate, which will result in significant price fluctuations of up to a few years when a new equilibrium of supply and demand will be determined by refiners and shipowners. In addition, finding the right ‘recipe’ for the fuel may be a challenging necessity. Though scrubbers or switching to LNG fuel are options, these are costly and availability it limited, respectively, so it is estimated that 95 percent of the global liner fleet will be switched to 0.5 percent fuel.

 

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