World News
IMO 2020 Will Naturally Result in Slower Steaming
With slow steaming already commonplace across the industry, the advent of even slower steaming will be a natural consequence of the upcoming IMO 2020 rule, industry players said Monday.
As reported at length in these pages, the new rule will see the global sulfur cap on marine fuel fall to 0.50% from January 1, 2020, with the vast majority of vessels on course to switch to higher priced low sulfur distillate fuel for compliance.
Slowing down is one of the easiest ways a vessel can reduce its bunker consumption.
"If the global fleet slows down by 30%, which is, in my opinion, the most probable scenario, 300 to 400 Capes would exit the market," World Maritime News quoted Stamatis Tsantanis, CEO of Seanergy Maritime Holdings, as saying at the Capital Link 6th Analyst and Investor Day in Athens.
Panelists said a similar slowdown would be witnessed in the tanker segment, while Ian Webber, CEO of Global Ship Lease, was among those to posit that container ships would slow down even more.
The comments are just the latest indication that ships will be burning less bunkers in the future, with the idea of a mandatory speed limit being imposed to reduce GHG emissions mooted earlier this year.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.00 | 0.50 | 775.00 | 3.50 |
| Rotterdam | 603.50 | 1.50 | 759.50 | 11.50 |
| Houston | 626.50 | 2.50 | 794.00 | 2.00 |
| Fujairah | 649.00 | 0.50 | 904.50 | 6.50 |
| Global 20 Ports Average | 664.00 | 2.00 | 855.00 | 0.00 |
| Global 4 Ports Average | 632.00 | 1.00 | 808.00 | 4.00 |
| Global Average Bunker Price | 716.50 | 1.00 | 901.00 | 12.50 |
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