With the IMO 2020 regulation just round the corner, shipowners are mostly catching up on understanding fuel compatibility and operational issues, but the equally important legal aspects have been largely left unsaid.
The Maritime and Port Authority of Singapore (MPA) has recently published a list of licensed bunker suppliers that are able to provide IMO 2020 compliant fuels in Singapore.
Vopak Terminals Singapore has kicked start its Sebarok tank expansion project that is set to add four new tanks to store marine gasoil (MGO) in anticipation of demand ahead of the IMO 2020 regulation.
Cosco Shipping Lines signed low sulphur fuel oil (LSFO) supply agreement with Double Rich Limited to meet the IMO 2020 sulphur cap.
The UAE port of Fujairah has made 0.5% low sulphur bunker fuel available this month, well ahead of the IMO 2020 global fuel sulphur cap.
The world’s third largest container line CMA CGM is continuing to hedge its bets on complying with the IMO 2020 sulphur cap with it reported to be opting for a mix of LNG propulsion and scrubbers on 10 newbuildings.
Early assessments of the price spread between 3.5% high sulphur bunker fuel and 0.5% low sulphur fuel are indicated at as low as $40 to a high of $104 per metric tonne (pmt), according to data drawn from Platts and Taiwan’s oil refiner CPC Corp. The lower end of the scale would call into question the decision by many owners to invest in scrubbers based on the expected fuel price spread.
Bunker One, the physical fuel supply arm of Bunker Holding Group, has expanded into Germany to service all ports at the German North Sea and Baltic Sea regions with bases in Rostock, Kiel and Hamburg.