STNG - Riding The IMO 2020 Tsunami
Executive Summary
In January 2020, the shipping industry will head to the brave new world of 0.5% low sulphur cap. IMO 2020 brings uncertainty to the shipping industry. The residual risks of the new regulation are:
- Shortage of compliant fuel leading to operational disruptions
- Compliant fuel price spikes
- Shipyard congestion for scrubber installations
When it comes to shipping companies, the most prevalent strategies that address the IMO 2020 challenges are:
- Switching to compliant fuel
- Installing scrubbers
Still, some companies have taken additional action by building strategic partnerships with important stakeholders (Trafigura Group, Feen Marine Inc.),