IMO 2020- Latest News & Analysis
On January 2020 the International Maritime Organization (IMO) enforces a new sulphur fuel regulation.
This regulation applies to every sea vessel worldwide and should help safeguard human health and protect our environment. While the impact on prices is still unclear, we are staying close to industry changes ensuring your business is kept UPDATED and PREPARED. Read our latest blog, on IMO information sheet.
WHAT IS IMO 2020
On January 1, 2020, a new mandatory regulation from the International Maritime Organisation (IMO), A SPECIALISED UN AGENCY, will implement a new regulation on all shipping companies to switch to cleaner fuels with a maximum sulphur content of 0.5%
This means that as of January 1, 2020, all ships will be required to use fuel with 0.5% sulphur content or less on all of the world’s ocean. The implementation of IMO 2020 should ensure major benefits for the environment and human health.
WHAT DO WE KNOW?
We know that the IMO 2020 regulation will already have a rate increasing effect in 2019 because of the reduced capacity due to the retrofitting of scrubbers and the fact that Carriers already need to switch to the more expensive fuel during 2019 to be compliant in 2020.
WHAT ARE THE CHALLENGES?
The compliance options to the IMO 2020 regulation are expensive but the actual cost is difficult to estimate for the time being, as this strongly depends on the market availability of Low sulphur fuel/or hardware (scrubbers) during next year.