Sulphur cap compliance costs lead to uncertainty

摘要

Financial weakness in the global shipping industry is likely to hamper efforts to comply with the International Maritime Organisation's (IMO) 2020 sulphur cap, creating uncertainty over which option to choose to keep emissions down, according to shipbroker Gibson. Sulphur emissions from ships will be capped at 0.5pc in 2020, down from 3.5pc today. Vessel owners will have the option to use marine gasoil (MGO), purchase new 0.5pc sulphur compliant fuel oil or install abatement technology known as scrubbers - which remove sulphur oxides from exhaust fumes - to comply with the new regulation. But significant uncertainty remains over which option vessel owners will choose, as each is expected to result in notably higher costs and a weaker freight market is making it difficult for shipowners to take on additional debt.