World News
2020 Global Sulfur Cap: IBIA Warns of Extreme Price Differentials, Low Compliance Levels
The International Bunker Industry Association (IBIA) warns that there will likely be an insufficient supply of marine fuel with a less than 0.5 percent sulfur content to meet industry demand should the global sulfur cap be implemented on bunkers in 2020.
"Such a move would lead to extreme price differentials, low levels of compliance with those companies that were compliant, operating at a 25 percent cost disadvantage to those less scrupulous operators and charterers," states the IBIA.
The IBIA's position is said to have been outlined by the organisation's chairman elect Robin Meech at the IBIA' annual dinner last week.
As previously reported by Ship & Bunker, the International Maritime Organization (IMO) is conducting a fuel availability study to assess whether the implementation of a 0.50 percent global sulfur cap for marine fuel should be delayed from 2020 until 2025.
Last week, Ship & Bunker reported that the IBIA will be pushing over the next year to improve bunkering facilities at ports around the world, and that carbon emissions, greenhouse gases, and education and raising industry standards would be the key concerns for his forthcoming term of office, as well as the members' recent industry wide call for higher ethical standards.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 645.50 | 3.50 | 771.50 | 1.50 |
| Rotterdam | 600.50 | 2.00 | 759.50 | 2.50 |
| Houston | 619.50 | 11.00 | 787.50 | 9.00 |
| Fujairah | 642.50 | 6.00 | 895.00 | 5.00 |
| Global 20 Ports Average | 662.00 | 4.00 | 851.00 | 5.00 |
| Global 4 Ports Average | 627.00 | 5.50 | 803.50 | 3.50 |
| Global Average Bunker Price | 714.50 | 1.00 | 890.50 | 2.50 |
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