IMO 2020 Will Create a Two-Tier Charter Market, Says Swedish Club

Wednesday February 13, 2019

Among the many uncertainties of IMO 2020, The Swedish Club says one thing we can be sure of is that the emerging split of scrubber “have” and “have nots” will produce a two-tier charter market.

“In this area there are many unknowns facing ship operators. Will low sulphur fuel be available? If so, what will it cost? What risks do we face in the changeover period? How can we turn this to our advantage?” says Lars A Malm, Director Strategic Business Development & Client Relations.

“One thing we do know is that, at least at the beginning, the Sulphur Cap 2020 legislation will produce a two-tier charter market – scrubbers installed versus no scrubbers.”

The comments come alongside the Club’s publication of a new guide aimed at assisting shipowners with the upcoming global 0.50% sulfur cap on marine fuel that comes into force from January 1, 2020.

“The Sulphur Guide is aimed at providing no-nonsense information to those thinking about the effect potential modifications will have both on the operation of their vessels, and existing charterparties and charterparties entered into in the future,“ says Malm.

The Sulphur Guide has been written in conjunction with Tony Grainger, Marine Engineer, TMC MarinePaul Harvey, Associate, Ince & Co and Jamila Khan, Partner, Ince & Co

The publication is available free of charge here: https://www.swedishclub.com/media_upload/files/Publications/Loss%20Prevention/Sulphur-Guide%202019%20www.pdf