2020 Global Sulphur Cap Could Add $100Bn to Shipping's Annual Bunker Bill

by Ship & Bunker News Team
Monday March 30, 2015

A global sulfur cap slated for 2020 is estimated to add an additional $50-100 billion to the shipping industry's annual fuel bills, Lloyd's List reports.

According to Maersk Maritime Technology's head of regulatory affairs Niels Bjorn Mortensen, the spread between heavy fuel oil (HFO) and Emission Control Area (ECA) compliant marine gas oil (MGO) is expected to remain in the range of $250 and $400 per tonne, regardless of different price fluctuations.

He added that the estimate could change depending on the future price of blended products like hybrid fuels and whether scrubbers become more common. 

Beginning in 2020, an updated global cap is expected to limit sulfur content in marine fuel to 0.5 percent from the current 3.5 percent, although a fuel availability study scheduled for 2018 could still see that date pushed back to 2025. 

However, earlier this year, the International Chamber of Shipping (ISC) said that it fully expected the new sulfur cap to be implemented in 2020 given the political pressure that the European Union would exert.