World News
Shipowners Can't Expect 2020 Non-Compliance Fines to Be Covered, Says Swedish Club
A protection and indemnity (P&I) club has drawn a line under shipowner non-compliance with the global sulfur cap on bunker fuel that comes into force from the start of 2020.
Speaking to maritime news provider Lloyd's List, Swedish Club managing director Lars Rhodin said that shipowners shouldn't automatically expect their insurance to cover fines incurred through non-compliance with the new rule.
However, Rhodin added that clubs would be flexible and discretion would need to be exercised.
A prominent view among shipping and bunker industry observers is that non-compliance is as likely as not to stem from an inability to source the right sort of bunker fuel rather than wilful avoidance, certainly at the outset.
P&I clubs are mutual organisations and are owned, ultimately, by the their shipowner members.
The International Maritime Organisation's sub-committee on Pollution Prevention Response is meeting in London this week where 2020 sulfur cap enforcement will be on the agenda.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| Rotterdam | 602.00 | 0.50 | 748.00 | 6.00 |
| Houston | 624.00 | 5.00 | 792.00 | 3.50 |
| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
| Global 20 Ports Average | 662.00 | 2.00 | 855.00 | 1.50 |
| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
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