Maersk Line Looks Likely to Favour 0.5% Sulfur Bunkers, Not Scrubbers, for 2020 Compliance

A Maersk Triple-E vessel: Photo Credit: Maersk

Maersk Line looks likely to favour the use of inherently compliant bunkers to meet the lower 0.50 percent sulfur cap on marine fuel coming into force in 2020, rather than investing in scrubber technology so it can continue to burn higher sulfur HFO.

The indication came in comments during a recent presentation given by Maersk Oil Trading, and were highlighted today by emerging emulsion fuel firm Quadrise Fuels International plc (Quadrise).

"The Company's understanding is that this approach has not been formally adopted by Maersk but that this is anticipated to be adopted by Maersk in the near future," Quadrise said.

Maersk have recently been trialling Quadrise's "MSAR" emulsion bunker fuel as part of a scrubber-based solution.

Quadrise Executive Chairman Mike Kirk said Maersk's likely approach to 2020 compliance was one that would minimise its capex commitments in the short-term, but that in the longer term "there remain significant challenges for the bunker industry to ensure that there will be the required quantity and quality of compliant fuel available from the refining industry for the operators."

Since the International Maritime Organization (IMO)'s October 2016 announcement that the global 0.50 percent sulfur cap on bunkers would come into force in 2020, rather than being delayed until 2025, there has been much debate over how the shipping industry will comply with the new rules - a situation that makes preparations for future demand difficult for both refining and bunker suppliers.

Currently, the vast majority of vessels are expected to switch to using compliant low sulfur bunkers, while a recent report published by global banking firm UBS Limited (UBS) indicates 19 percent of shipowners are currently planning to install scrubbers and carry on using HFO.

Today's news on the direction being favoured by Maersk Line, the world's biggest box ship company, will presumably be well noted as part of this emerging picture.

As for Quadrise, while Kirk noted the fuel being trialled by Maersk was a high sulfur product intended to be used in conjunction with a scrubber, he nevertheless remained upbeat over the company's efforts to commercialise MSAR for the global marine industry.