10SEP2019 - NEWS - New emission norms for ships: Dirty fuel oil down but not outS

Asia’s spot premium for 380-centistoke (cst) high-sulphur fuel oil (HSFO) is expected to ease gradually from its recent record highs as shippers adopt cleaner marine fuels next year to meet new, tougher rules on emissions from ships.

But as the deadline approaches, analysts and traders agree that demand for the dirtier HSFO will not die out completely as an increasing number of ships get equipped with sulphur-cleaning devices in the coming years to combat pollution.

Starting Jan. 1, 2020, the International Maritime Organization (IMO) requires the use of bunker fuel with a sulphur limit of 0.5%, down from 3.5% currently.

Only ships fitted with expensive exhaust cleaning systems, known as scrubbers, which can remove sulphur from emissions, will be allowed to continue burning HSFO.