12SEP2019 - NEWS - IMO2020 and Bunkers: JVs turning challenges into opportunities

The implementation on 1 January 2020 of the global sulphur cap on marine fuels is expected to give rise to potential opportunities and risks in relation to issues such as the availability of marine fuels, the quality of marine fuels, increased cost and availability of credit, and price volatility. In response to these issues, the Marine team at Clyde & Co is seeing an increased prevalence of joint ventures in the marine industry between ship owners and commodity traders, driven by a desire to utilise economies of scale, pool resources, and improve competitiveness.

We have also seen an increase in joint ventures established in the marine industry and bunker market to enable knowledge sharing between entities, both to enable one partner to enter a new geographical market as well as to enable a partner to expand its skills and experience in a market sector through a joint venture with an established supplier.