Marine fuels & IMO 2020: So much for all the hype
We are now well into the IMO 2020 shipping regulations, and it is clear that all the hype leading up to implementation was exaggerated. Covid-19 has certainly softened the impact of the shipping industry’s move to a low sulphur compliant fuel
VLSFO the fuel of choice
As the shipping industry has moved further into 2020, and with the need to comply with new regulations to cap the sulphur content of fuel burned to 0.5% compared to 3.5% previously, it has become clearer that the fuel of choice for ship owners is very low sulphur fuel oil (VLSFO), rather than a marine gasoil. This is evident when looking at bunker fuel sales in Singapore, with VLSFO making up almost 70% of total fuel oil sales in the first six months of the year, this compares to around 11% when it comes to marine gasoil. Meanwhile, given the use of scrubbers on some vessels, high sulphur fuel oil (HSFO) sales made up around 18% of total sales.
In general, compliance with the new fuel regulations has been quite strong. Again, looking at Singapore ports, over the first quarter of this year, around 96% of ships entering the port were using a compliant fuel. Whilst those which were marginally over were likely due to residual HSFO in the tanks, rather than purposely using a non-compliant fuel.
Source: ING (Click for further of the article)