How Ready Are You for IMO 2020?

Paul Hardy, NSI. Image Credit: NSI

As part of our planning, NSI have prepared an IMO2020 compliant fuel 20 point checklist:

1. Have you analysed your historic lifting patterns? Do you know of any drastic changes in the future?
2. Have you decided to burn distillate or 0.5% fuel oil?
3. Have you checked availability of each type of product?
4. Have you checked compatibility of each type of product?
5. Have you contracted tank cleaning services? ( If not do not leave to last minute as there will undoubtedly be shortage of labour and increases in cost)
6. Have you planned to stagger the tank cleaning?
7. Have you looked at contract structures in major ports?
8. Have you planned a hedging programme to mitigate price risk?
9. Have you planned operationally for the segregation of tanks for differing products and how it will effect lifting schedules?
10. Have you got the extra manpower in place to handle the additional requirements for planning and implementation of IMO2020 programme?
11. Are you prepared for claims due to reproducibility of sample on 0.5% sulphur product? (The product will most likely be blended as close to the limit as possible)
12. Do you have a procedure in place if there is co-mingling of products and there are operational problems?
13. Have you checked engine warranties for newer vessels and/or equipment guarantee terms and periods?
14. Have you factored into operational cost models the potential scarcity of different products?
15. Have you considered pooling your volume in major ports with other owners?
16. Have you secured barging in your main lifting ports where there might be scarcity due to increased segregation of products on board the barge?
17. Have you got a plan to increase the lead times for enquiries and to maximise the stems?
18. Have you spoken with suppliers about increasing credit lines? (conservatively you will need 40-50% more credit)
19. Have you factored into your budget the need for increased capital requirements?
20. Have you fully assessed scrubbers as an alternative?

By ticking off these items one by one it is possible to see how far down the line you are in terms of planning. For those companies that require planning services we are here to help and can advise on any of the above.

We very much hope the www.2020planning.com website will become an integral part of your planning and will increase the collaboration between us and our clients. We do not see our relationship purely as bunker brokers but as helping you manage the supply logistics, operational issues and pricing risk that IMO2020 brings.