Viswa Lab in its latest technical update has quoted the report published in GCaptain, regarding the British government stating reasons including the COVID‐19 problems for suspending its IMO 2020 fuel checks and has explained its views.
No enforcement of regulation?
The British government, due to various reasons including the COVID‐19 problems, has decided not to undertake any enforcement activity on the ships coming to Britain.
More countries to follow?
Viswa Lab anticipates this move from Britain to immediately trigger a similar reaction from many countries, especially who are struggling to implement or enforce the new fuel regulations.
When this happens (even if Greece goes the same way), it means 16% of Global Shipping.
Regulation to remain on papers!
Likely to postpone enforcement date
The IMO regulation will only remain on paper. Of course, IMO in anticipation of this is likely to announce a postponement of the implementation and enforcement date which could be 6 months to 1 year.
This is going to make a huge change in the Global bunker fuel scenario.
Impact of regulation postponement
According to Viswa Lab the below mentioned are simple reconstructions of likely scenarios-
- HSFO prices may go up,
- Low sulfur (including VLSFO) may come down and
- the differential will shrink further.
Viswa says, at this point, it is hard to predict the actual outcome. In any case, more to think about while having more time… thanks to the COVID shutdown.
For more information, read our article Britain Suspends IMO 2020 Shipping Fuel Checks Due To COVID-19
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Viswa Lab
