Over 90% of global trade is carried out by sea. This includes the world’s energy, raw materials and manufactured products. The current situation is full of chaos, panic, shock, and confusion due to the impact of the 2020 sulfur cap.
Unprepared market
The upcoming 2020 sulfur cap presents numerous hurdles, which, according to the International Chamber of Shipping, have yet to be adequately addressed.
Experts see the market unprepared for this change and the results could be unlikely for the maritime trade which might consequently affect the global economy.
In the next 18 months, the single most influential policy change in decades will take effect, and the shipping community is yet not prepared in facing a difficult transition for many reasons.
Relaxed regulation on sulphur cap
The preset global sulfur cap of 0.50% m/m (mass/mass) in 2020, after the revision from the earlier 3.5% cap, was announced by the International Maritime Organization, IMO, the United Nations regulatory authority for international shipping on October 27th, 2016. This will affect as many as 70,000 ships.
IMO suggested alternatives
Ships may also meet the SOx emission requirements byan using approved equivalent method, such as either an exhaust gas cleaning systems or “scrubbers,” which “clean” the emissions before they are released into the atmosphere. In this case, the equivalent arrangement must be approved by the ship’s Administration (the flag State).
On May 21st, the ICS issued a warning that “chaos and confusion” will grip the market unless the UN International Maritime Organization urgently resolves several issues.
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Source: Seeking Alpha
