Global shipping sails into turbulent times as IMO 2020 nears

WHEN the shipping industry counts down to the New Year on Dec 31, industry participants are unlikely to be in a celebratory mood as global markets wake up to a whole new shipping regime come Jan 1: IMO 2020.

The new global regulation "IMO 2020" introduced by the International Maritime Organisation (IMO) mandates that the global shipping fleet will have to stop burning high-sulphur fuels, with the bunker fuel sulphur limit reduced from 3.5 per cent to 0.5 per cent from Jan 1. These measures to ensure cleaner emissions and combat air pollution are backed by 95 signatory states to this green shipping regulation.

With just days to go, opinions in the global markets on the specification of the new marine fuel, as well as the most competitive pricing method, remain as divergent as they were a year ago.