Page 15 - INTERCARGO - Annual Review 2019/2020
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2020 Global Sulphur Limit
implementation
From 1 January 2020, the fuels With the introduction of the new limits, initial strong price
differentials for various fuel options were observed, with
used by vessels have been required marine gasoil proving cheaper than low-sulphur fuel oils in
to contain a maximum sulphur many ports. At the same time, uncertainty remained about
the worldwide supply of compliant fuels and concern about
content of 0.5%, down from the safety and compatibility of fuel options.
3.5%. The International Maritime The requirement for ships to use low sulphur fuel has been a
Organization (IMO) expects that the step change never before attempted on such a global scale.
Owners have been working tirelessly to ensure plans are
new limit will mean a 77% drop in in place to source very low sulphur fuel oil (VLSFO) where
overall SOx emissions from ships, needed and many ships have had to change bunkering
ports. The industry has been reliant on cooperation from
equivalent to an annual reduction across the entire supply chain, including fuel suppliers to
of approximately 8.5 million standardise fuel blends; Flag States to report issues to the
IMO as appropriate and for Coastal States to properly train
metric tons of SOx. The maritime their Port State Control (PSC) personnel. While shipowners
industry’s transition to this new are contributing to the best of their ability, all stakeholders
should uphold their responsibilities - including fuel suppli-
regulation has not been without ers, Flag and Port States, as well as charterers themselves.
problems. It is expected that quality After half year through in 2020, INTERCARGO along with part-
and safety problems will continue ner organisations published the results of an industry survey
aimed at obtaining an overview of how the industry has ex-
to be a challenge for the global perienced the transition to using compliant low-sulphur fuel
shipping industry. oil from 1 January. The survey gave valuable insights into the
magnitude and nature of problems encountered by the in-
dustry in the transition to using low-sulphur fuel oil.
For more information on this topic please visit:
intercargo.org/news/topics/emissions
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