Michael J. Kasbar, Chairman and CEO, World Fuel Services. Image Credit: World Fuel Services
World Fuel Services Corporation (WFS) [NYSE:INT] Chairman and CEO, Michael J. Kasbar, believes his company will benefit from the upcoming IMO 2020 rule
The global 0.50% sulfur cap on marine fuel that comes into force from January 1, 2020 will mean most vessels switching to low sulfur distillates for compliance.
But a growing number of vessels choosing scrubbers will look to continue burning traditional HFO, while a raft of new VLSFO's are also expected to become available.
"You certainly have some issues relative to the availability of high sulfur fuel oil; the supply and logistics, the compatibility. So it's going to be definitely a different type of market," Kasbar said during the firm's latest earnings call.
"Certainly that will benefit us from a perspective of the expertise that we bring in terms of sourcing different qualities of fuels and making sure that it's available. So it's going to be a bit more work for the marine team without question, but it's right up our ally and we're well positioned for it."