World News
Make Haste to Meet 2020 Sulfur Cap, Warns Marsh
A new report from marine insurance broker Marsh has highlighted the pressures that shipowners are under with the looming sulfur cap rule on bunker fuel.
The broker notes that companies are leaving it late in the day to decide on how their ships might comply with the global 0.5% sulfur cap which starts on January 1, 2020, maritime news provider Lloyd's List reports.
The Marsh report, called Emissions Regulations: Concerns for the Marine Industry, points out that booking space in a "preferred shipyard" to make any necessary changes to ships' engines or machinery may prove difficult in the run up to 2020.
However, ship operators shouldn't be tempted to flout the rule as that could lead to them forfeiting their right to insurance cover.
"The failure to comply with international conventions, and consequently losing flag state convention certification, could affect the validity of a shipowner's insurance cover if they continue to operate without prior insurer consent," the Marsh report was quoted as saying.
To date, shipowners and ship operators have maintained a 'wait-and-see' approach to the tougher global sulfur cap. One reason for their reticence is an expected period of price volatility on bunker fuel come 2020.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 655.50 | 2.00 | 808.50 | 4.50 |
| Rotterdam | 619.00 | 0.00 | 789.00 | 8.00 |
| Houston | 628.50 | 7.50 | 812.50 | 1.50 |
| Fujairah | 653.50 | 4.50 | 900.00 | 2.50 |
| Global 20 Ports Average | 672.00 | 0.50 | 885.00 | 7.00 |
| Global 4 Ports Average | 639.00 | 2.50 | 827.50 | 2.00 |
| Global Average Bunker Price | 727.50 | 1.50 | 933.50 | 5.00 |
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