Despite assurances from fuel suppliers over the availability of compliant fuel to meet IMO 2020 from 1 January next year, industry executives warn that logistics will be a mess and the majority of smaller bunkering ports will not have low sulphur fuel.
With just a small percentage of ships fitting scrubbers owners are warned they will need secure availability of high sulphur fuel oil (HFO) in 2020 as the supply chain will be geared to delivering compliant low sulphur fuel oil (LFSO).
Against a backdrop of a gloomy outlook for container trades Bimco analyst Peter Sand warns a failure by lines to pass increased fuel costs from the IMO 2020 sulphur cap could result in bankruptcies.
Wilhelmsen Ship Management (WSM) is re-entering the crude tanker segment a decade after it exited with the sale of ITM Ship Management.
The expanded Panama Canal saw container trade switching from the US West Coast calls, with landbridge connections inland, to calls on the East Coast, however, higher fuel costs associated with the IMO’s 2020 sulphur cap could drive up to 1.2m teu of trade back to West Coast ports.
Whilst many people believe that the IMO’s ambition to reduce shipping’s 2050 carbon emissions by at least 50% compared with 2008 levels appears to be an almost impossible target, shipping economist Martin Stopford does not agree.