Costs, 0.50%S sales rising as IMO2020 approaches. File Image / Pixabay / Ship & Bunker
Trader KPI Bridge Oil says its sales of IMO2020 grade fuels have exceed those of HSFO for the first time.
"We started fixing 0.5% sulphur contracts in flow ports at the beginning of Q2 and, as expected, the demand from business partners looking to secure availability of 2020 compliant fuels has steadily increased since," CEO Søren Høll said in a statement released today.
While the vast majority of ships will be switch to using 0.50%S fuels, exactly when the change will take place has been unclear.
Singapore, for example, by far the world's biggest bunkering port and representing some 20% of global volumes, recently reported 15% of its overall total sales volume for October was low sulfur fuel oil.
The recent uncertainty has caused significant market volatility, but with the increased sales of the more expensive fuels, Høll says he it still expecting to see a shortage of available credit in the market moving into 2020.
"In this final stage of the switch to 2020 compliant fuels we're experiencing significant price and availability fluctuations in most ports around the world as the market adjusts," he noted.
The new rules come into force from January 1, 2020.