World News
Maersk Says IMO 2020 Could Add $2 Billion to its Bunker Bill
Maersk says the upcoming "IMO 2020" global 0.50% sulfur cap on marine fuel could add at least $2 billion to its annual bunker bill.
"I wouldn't call it a perfect storm, but it's close," Simon Bergulf, director for regulatory affairs at A.P. Moller-Maersk A/S, was quoted by Bloomberg as saying.
Maersk reported for 2017 it spent 3.34 billion on bunkers, meaning an extra $2 billion in 2020 would be a jump of over 60%.
Maersk has made a notably firm stance on choosing low sulfur fuel for compliance, rather than adopting tech to achieve an equivalent method of compliance, with Niels Henrik Lindegaard, Head of Maersk Oil Trading, telling Ship & Bunker in May last year that "scrubbers will not be the way forward for our fleet."
The new sulfur cap comes into force from January 1, 2020.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 560.50 | 7.00 | 669.00 | 4.00 |
| Rotterdam | 512.50 | 2.00 | 653.00 | 2.00 |
| Houston | 548.00 | 3.00 | 671.00 | 0.00 |
| Fujairah | 549.00 | 6.00 | 747.00 | 0.00 |
| Global 20 Ports Average | 577.50 | 3.50 | 749.50 | 1.50 |
| Global 4 Ports Average | 542.50 | 3.50 | 685.00 | 0.50 |
| Global Average Bunker Price | 628.50 | 1.50 | 800.50 | 1.00 |
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