01OCT2010 - NEWS - Shippers set for IMO 2020 supply complications

The shipping industry is gearing up for the challenge of IMO 2020. Some are queuing up for getting scrubbers installed, while the majority are preparing for using low sulfur fuel oil and marine gasoil. Both routes could come at a high price.

The freight market is bracing for supply snags as scrubber bottlenecks and high-cost low sulfur fuels affect the number of ships transporting cargoes including coal, iron ore, crude and oil products, with many big operators spreading the risk between scrubbers and new marine fuels. "With all the delays at scrubber yards and so much uncertainty over fuel costs, it has made sense to share the risk between scrubbers and low sulfur fuels," one ship management company said.
Another executive with a tankers company said: "Owners do not want to put all their eggs in one basket as none is sure about the differential between low and high sulfur marine fuels" early next year.