From gCaptain:
MSC Facing Over $2 Billion Bump in Annual Fuel Bill from IMO 2020
Swiss-headquartered MSC expects to pay over $2 billion a year in fuel costs due to tougher global marine fuel rules and will introduce a bunker charge next year to recoup expenses, the world’s number two container line said.
UN agency the International Maritime Organization (IMO) will prohibit ships from using fuels with sulphur content above 0.5 percent from Jan. 1, 2020, compared with 3.5 percent today, unless they are equipped with exhaust gas cleaning systems, known as scrubbers, to clean up sulphur emissions.
For shipping companies struggling from years of weaker earnings, the new regulations are expected to mean more cost pressure....MORE
“MSC has estimated that the cost of the various changes we are making to our fleet and its fuel supply is in excess of two billion dollars (USD) per year. We have already had to start incurring these costs to be ready for 2020,” the group said in a Dec. 1 note.
MSC said it would levy a bunker recovery charge from Jan. 1, 2019 “as a result of the regulatory changes we all support”...
Related:
Big Oil Traders Set to Cash In On Low Sulphur Shipping Fuel Change
Oil: The Impact On Refiners Of Shipping's Low-Sulpher Fuel Ruels After 2010
"Maersk Braces For A $5+ Billion Fuel Bill In 2020"
Top Norwegian Oil Analyst Quitting DNB to Pursue 2020 Low Sulphur Fuel Rule Riches
Shipping: The New Low Sulpher Rules Will Have A Huge Impact On the Oil Business (shipping and world economy too)
Rich Rewards Await Top Oil Refiners as Ships Make Low Sulpher Switch Fuel
Shipping: "Hapag-Lloyd Expects USD 1 Bn in Extra Fuel Costs from 2020 Sulphur Cap"
Shipping: CEO of Third Largest Fleet Says "We're All Going to Go Bust"
Shipping: "CMA CGM Says Global Sulphur Cap to Cost Customers $160 Per Container on Average"
That's serious money, say on a 10,000 TEU average voyage, $1.6 million per trip?
Jeez, no wonder the industry is freaking out....
