Low-Sulfur Fuel Rule

Low-Sulfur Fuel Rule

Starting Jan. 1, 2020, all ships must burn fuel with a content of 0.5 percent sulfur to comply with an International Maritime Organization amendment to the International Convention for the Prevention of Pollution from Ships (MARPOL) known as Regulation 14. 

As a result, a host of challenges face international container shipping by sea. These include concerns over higher costs, international compliance, and the availability of low-sulfur fuel at key international bunkering hubs such as Rotterdam and Singapore. 

Carriers have three paths to compliance, including the use of low-sulfur fuel, installing scrubbers and burning regular bunker fuel, or transitioning to liquefied natural gas to power vessels.

News & Analysis

31 Jan 2019
The fuel efficiency of Zeamarine's newbuildings will be advantageous, and it will also be looking at scrubber technology and durability, Zeamarine president and CEO Andre Grikitis said.
AAL Kembla.
31 Jan 2019
Among shipowners’ concerns: will there be enough low-sulfur fuel on Jan. 1, 2020? And will the low-sulfur quality be consistent?
Rotterdam port.
30 Jan 2019
The injection of vessels comes as demand growth of Asia-Europe westbound volume slows.
Port of Oakland.
28 Jan 2019
The year 2019 will likely become one of the most consequential in a generation for container shipping; old challenges are off the table, but new ones have replaced them.
A container ship accepts fuel.
24 Jan 2019
This lack of clarity on future high- and low-sulfur fuel costs worries BCOs and NVOs as they enter the more critical second phase of negotiations in March.
BBC Chartering MPV/HL.
23 Jan 2019
Toepfer’s index consists of an average of six-month to 12-month time charter rates per day for 12,500 deadweight-ton multipurpose and heavy-lift F-type vessels.

Commentary

Negotiations for 2019-2020 shipping contracts will be difficult on a number of fronts.

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