Sulphur cap countdown

With 2020 rapidly approaching, much of the shipping industry is trying to ascertain what the International Maritime Organisation's 2020 sulphur cap means for them. As one of the most important regulations to ever hit the maritime world, it will have an impact across the shipping ecosystem, from boardrooms to engine rooms and brokers to seafarers. Given the scale of the impact, many stakeholders are worried about what it means for their business, while some are also anticipating it could deliver them bumper profits. The Fairplay team will be tracking the key developments as we approach 2020, highlighting the risks and opportunities of this momentus change for our industry.  

News & Analysis

MPC’s AS Laetitia
15 Nov 2018
MPC has placed firm orders for five units from an unnamed supplier for installation prior to the implementation of the global 0.5% sulphur cap on marine fuels on 1 January 2020.
HMM Promise
16 Jul 2018
Hyundai Merchant Marine could opt for scrubbers when the South Korean liner operator finalises orders for 20 large container ships.
Lars Robert Pedersen, Deputy Secretary General, BIMCO.
13 Jul 2018
Experts have expressed concern about new and unproven fuel formulations, including their potential to clog up filters, cause engine shutdowns or exhibit dangerously low flash points.
Spliethoff company logo on the side of a ship
06 Jul 2018
The company intends to install exhaust gas-cleaning systems on 30 more vessels by 2020 when the global 0.5% sulphur cap on marine fuels goes into force.
A scrubber being installed
05 Jul 2018
South Korea’s largest shipping group has not decided how many bulk carriers will be retrofitted, although the vessels involved are dedicated to contracts with compatriot steel maker POSCO.

Commentary

As the 2020 sulphur cap nears, access to credit could be the crunch point for shipowners.