The shipping industry comprises of multitudes of cargo ships, tankers, container ships, and cruise liners that belch noxious sulfuric gases and fine particles that drift over cities and cover them with smog.
However, the scenario is set to change form January 2020 onwards as the United Nations International Maritime Organization has resorted to strict measures to limit the amount of sulfur content in maritime fuel.
Blink first scenario
Though there are multiple options provided for shippers, they have been slow either to make the switch to higher-quality fuels or install expensive equipment known as scrubbers to clean exhaust from what is known in the industry as bunker fuel. Oil companies are also watching and waiting, as few have upgraded their refineries to adapt to new regulations.
Neil Beveridge, an oil analyst at Sanford C. Bernstein, a research firm for investors said, “It comes down to who is going to blink first. So far, the shipping industry looks like it is sleepwalking into a disaster. Everyone is waiting for everyone else to make the first move”.
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Source: The New York Times