BIMCO’s analysis shows significant geographical differences when it comes to VLSFO sulphur compliance and ISO 8217 quality problems

BIMCO, together with the other industry organisations, acquired data on all commercial fuel samples tested by Veritas Petroleum Services (VPS) during 2020. This VPS data clearly shows the geographical differences between the standard of the fuels delivered to ships. Europe and the US seem to have the poorest performance. This is both in relation to sulphur compliance which may lead to increased air pollution, and ISO 8217 quality parameters, which may impact the safety of ships. BIMCO is providing IMO with data on very low sulphur fuel oil (VLSFO) sulphur compliance and ISO 8217 fuel quality problems. The submissions include an invitation to countries to consider implementing and enforcing a licensing scheme for bunker suppliers operating within their jurisdiction. Such a measure should help combat the high level of problems in some of the poorer performing geographical regions.

IMO2020 Sulphur Cap Scenarios

Tanker shipping: sky-high freight rates have given way to a profitable winter market supported by the fast-approaching IMO 2020 Sulphur Cap

BIMCO expects freight rates will once again come under pressure after the end of the high seasonal demand in Q4, as well as the boost from the sulphur cap. The fleet growth of 6.3% in the crude oil tanker market and the 4.8% growth in the oil product fleet will have its consequences on the supply and demand balance.

2020 Transitional Fuel Clause imminent

BIMCO’s 2020 Bunker Clause working group is pushing hard to finish work on two key clauses addressing the global switch to 0.5% sulphur content fuel on 1 January 2020.

The new digital BIMCO Bulletin is out

The new BIMCO magazine the “Bulletin” is out and zooming in on challenges and questions asked ahead of the 2020 sulphur cap. “Sulphur cap consequences will draw focus for two years,” BIMCO’s Secretary General, Angus Frew, points out in his foreword. Also, read the latest market analysis by Peter Sand and read why shipowners urgently need a fuel-management plan.

Containerships overtake crude oil tankers as most scrubber-fitted sector

Containerships with a collective cargo carrying capacity of 5.3m TEU are now fitted with an exhaust gas cleaning system (scrubber) to remove sulphur oxides (SOx) from the exhaust gasses generated by the combustion processes in marine engines and thereby comply with the IMO 2020 global sulphur regulation which came into force on 1 January 2020.

BIMCO publishes interpretation of discord between fuel oil samples

As 1 January 2020 approaches and the sulphur regulation from the International Maritime Organization (IMO) comes into force, BIMCO is experiencing an increase in questions related to the discord between the verification produces for statutory fuel oil samples and commercial fuel oil samples.

VLSFO premium of USD 200/tonne increases scrubber advantage

The spread between very-low sulphur fuel oil (VLSFO) and high-sulphur fuel oil (HSFO) has widened following Russia's invasion of Ukraine. The HSFO price, however, could rise if Russian volumes coming into the market start declining due to sanctions.

Tanker Shipping: A boost from the 2020 sulphur cap will not make up for a fast-growing fleet.

Even with the sulphur cap expected to give a boost to the tanker market, high fleet growth will put pressure on earnings.

2020 Fuel Transition Clause for Time Charter Parties

BIMCO has produced two clauses for time charter parties to address key contractual issues relating to the switch to fuel with a maximum sulphur content of 0.50% as of 1 January 2020. The two clauses are the 2020 Marine Fuel Sulphur Content Clause, which replaces the BIMCO Fuel Sulphur Content Clause 2005, and the 2020 Fuel Transition Clause, which deals with switching between fuel with a maximum sulphur content of 3.50% and fuel with a maximum sulphur content of 0.50% by 1 January 2020. Both clauses should be incorporated into time charter parties. This clause was published on 10 December 2018.