IMO 2020 to beckon in a new reality
The new regulations are poised to change shipping markets forever. Some participants may handle the new regulatory environment better than others
IMO 2020 will radically change shipping market supply/demand dynamics. The basis of the new regulations is simple–to reduce sulphur emissions by tightening the requirements around allowable fuels any given seagoing vessel can burn. In technical terms, this means cutting sulphur content to 0.5pc, down from 3.5pc at present. High sulphur fuel oil (HSFO) demand will, in part, be forced to shift towards cleaner alternatives, namely marine gasoil and low sulphur fuel oil (LSFO). LNG is also an option, albeit uptake will be limited. Advantage West Africa A barrel of crude oil is associated with a wide variety of classifications that can range from light-sweet (thin, low sulphur) to heavy-sour (d
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The December/January issue of Petroleum Economist is out now!
