From Cosco in China to Posco in South Korea, Asian companies are pouring in millions of dollars to upgrade their shipping fleets as the International Maritime Organization’s deadline for cleaner bunker fuels inches closer. With less than 16 months remaining, the global shipping industry is setting aside about $60 billion to obtain the right infrastructure in order to embrace cleaner shipping fuel. The IMO’s global fuel sulfur cap is set to drop from 3.5% to 0.5% at the start of 2020, forcing shipowners to make changes. While it’s evident that measures being adopted by most point to essentially three main options—the use of new low-sulfur fuel oil, instillation of scrubbers to continue use of high-sulfur fuel oil, or changing fuel to LNG—each alternative comes with its own set of challenges. Cosco Shipping has stepped up orders for engines that allow dual-fuel operation, and steelmaker Posco has signed an agreement to get scrubbers fitted on bulkers delivering commodities. South Korea’s Hyundai Merchant Marine said in April it was considering using LNG bunkers or installing scrubbers in its newbuilding of 20 mega container ships. In May, container shipper APL, a part of CMA CGM Group headquartered in Singapore, said it was considering… continue reading
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Source: CTRM Center