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

A heavy lift ship.
10 Dec 2018
Both clauses are designed to be "simple and practical" and ease the global fleet's Jan. 1, 2020 transition to a low-sulfur fuel era, BIMCO said.
An MSC ship.
10 Dec 2018
After four straight months of declining demand growth on the westbound Asia-Europe trade, container volume has started to increase.
A column being lifted on to a barge.
06 Dec 2018
An initial cargo of 19 units weighed more than 850 metric tons (937 tons) combined and included separators, heaters, and columns designed for hydrocarbon processing.
Maersk Line.
05 Dec 2018
Container shipping is at a key point in its pursuit of carbon neutrality, and Maersk wants industry help in cleaning up the business.
A container ship receiving fuel
29 Nov 2018
Alphaliner offered telling data on ocean carrier third-quarter operating margins compared with a year ago, and despite higher shipping demand and revenue, the margins are a source of concern.
29 Nov 2018
Sponsored: Remote container management is a game changer for the reefer cargo, said Hamburg Süd's Smet in a 2018 JOC Container Trade Europe Conference panel.

Commentary

The year ahead holds major challenges for ocean carriers, and the challenges can be even more acute for midsize carriers such as Yang Ming, requiring even more prescience and agility.