World News
Low Sulfur Bunkers "Most Environmentally Friendly Solution" for IMO 2020: Hapag-Lloyd
Hapag-Lloyd says the use of low sulfur fuel oil “is the most environmentally friendly solution in the short term” to comply with the upcoming IMO 2020 rule.
The new global 0.50% sulfur cap for marine fuel comes into force from January 1, 2020, and the carrier says the use of compliant fuel will also be “the key solution" for it to remain compliant.
While not explicitly stated by the carrier, the main alternative to burning compliant fuel is to install scrubbers. This allows vessels to achieve an equivalent method of compliance while burning otherwise non-complaint HSFO.
Exactly how many ships will have scrubbers in 2020 has been the source of much debate in recent months. There have also been recent arguments both for and against the environmental credentials of the technology.
Using liquified natural gas (LNG) bunkers is another option for owners, although retrofitting vessels to use gas is both a lot more involved and a lot more expensive compared to scrubbers.
The vast majority of ships are set to switch to compliant fuel for 2020.
While burning compliant fuel will be Hapag-Lloyd's initial strategy for compliance, earlier this year the firm said it will test both scrubbers and LNG.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 570.00 | 1.00 | 683.00 | 2.50 |
| Rotterdam | 515.50 | 1.00 | 685.00 | 7.50 |
| Houston | 555.00 | 1.00 | 678.00 | 1.00 |
| Fujairah | 563.00 | 2.00 | 754.50 | 0.50 |
| Global 20 Ports Average | 587.50 | 1.50 | 765.00 | 0.50 |
| Global 4 Ports Average | 551.00 | 1.00 | 700.00 | 1.00 |
| Global Average Bunker Price | 634.50 | 1.00 | 812.50 | 1.00 |
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