New ship emission regulations result in costly operational changes for refiners and ship owners and operators. Commonly referred to as IMO 2020, new ship emission regulations issued by the International Maritime Organization require vessels use lower-sulfur bunkering fuel effective January 1, 2020. This means a new, lower sulfur fuel oil must be created, plus prices for low sulfur product will likely rise as demand will be high and supply low.
Why? The timeline between now and 2020 is considered too short to build the number of process units needed to convert high-sulfur fuel oil to the new 0.5% spec. So, a new fuel must be created – 0.5% very-low sulfur fuel oil (VLSFO). Additionally, the price for lower sulfur material is expected to be much higher than high-sulfur fuel because of limited supply and high demand.
You can find a calculated price for this new 0.5% very-low sulfur fuel oil (VLSFO) in the Global Marine Fuels Report. This report also provides assessed prices of currently used high-sulfur bunkering fuels in the most important ports around the world. Easily track cargo and bulk fuel prices for Asia, Mideast, Europe and the Americas with this concise report filled with at-a-glance tables and charts. Download a sample report and see for yourself.
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IMO 2020 is looming closer and market uncertainty abounds. Ship owners, refiners, suppliers and fuel managers need reliable price transparency found in the OPIS Global Marine Fuels Report to make cost-effective decisions regarding their fuel slate and the possible outcome of changes they need to make. The report is published using full-day spot pricing methodology for sound and accurate price data.