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  • DATVF.VNU
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    -0.024
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  • DATVF.VEU
    1.467
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    -2.7%
  • DATVF.PHLCHI
    0.928
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  • DATVF.CHIATL
    1.838
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  • DATVF.DALLAX
    0.886
    0.022
    2.5%
  • DATVF.SEALAX
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  • DATVF.LAXDAL
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  • DATVF.ATLPHL
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  • DATVF.VWU
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  • DATVF.LAXSEA
    2.027
    -0.003
    -0.1%
  • ITVI.USA
    10,024.800
    140.540
    1.4%
  • OTRI.USA
    6.280
    0.120
    1.9%
  • OTVI.USA
    10,012.370
    136.170
    1.4%
  • TLT.USA
    2.550
    -0.020
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  • WAIT.USA
    150.000
    0.000
    0%
  • DATVF.VSU
    1.215
    -0.009
    -0.7%
  • DATVF.VNU
    1.410
    -0.024
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  • DATVF.VEU
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  • DATVF.PHLCHI
    0.928
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  • DATVF.CHIATL
    1.838
    -0.094
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  • DATVF.DALLAX
    0.886
    0.022
    2.5%
  • DATVF.SEALAX
    1.068
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  • DATVF.LAXDAL
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  • DATVF.ATLPHL
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  • DATVF.VWU
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  • DATVF.LAXSEA
    2.027
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  • ITVI.USA
    10,024.800
    140.540
    1.4%
  • OTRI.USA
    6.280
    0.120
    1.9%
  • OTVI.USA
    10,012.370
    136.170
    1.4%
  • TLT.USA
    2.550
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  • WAIT.USA
    150.000
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BusinessContainerEconomicsEuropeFinanceFuelInsightsMaritimeNewsOcean shippingRegulationRisk & Compliance

Shipping coalition takes aim at IMO 2020 fuel preparations

Shipping is not ready to safely implement IMO 2020 low-sulfur fuel rules by the start of next year, according to a coalition of shipping trade associations.

Unless some form of emission abatement technology such as scrubbers has been installed on vessels, the new International Maritime Organization (IMO) regulations mandate that the sulfur content of fuel oil used by ships operating outside designated emission control areas does not exceed 0.5%, compared to 3.5% now.

Scheduled to enter into force Jan. 1, the rules will be a major boost to the environmental performance of ocean freight. However, as reported in FreightWaves, the premium prices of low-sulfur fuels are expected to drive up global supply chain costs, and shipping bodies also believe there could be fuel shortages and discrepancies in standards.

These were among the points made by a roundtable of shipping leaders representing the major shipping industry trade associations BIMCO, ICS, INTERCARGO and INTERTANKO when they met Sept. 10 during London International Shipping Week.

“With less than four months to go until the introduction of the new limits on sulfur emissions from shipping, there is still significant uncertainty about the worldwide supply of permissible fuels and concern about the safety and compatibility of fuel options,” said a joint statement.

The associations called on all parties, including charterers, bunker suppliers and nation states to “double their efforts to ensure a smooth transition” and provide operators with clear fuel standards ahead of Jan. 1.

“The industry has been working hard to ensure that we are ready for January 1, 2020, but we still have major concerns over the safety and availability of compliant fuels,” said Dimitris J. Fafalios, chair of INTERCARGO, who also chaired the meeting.

“We need all parties to fully play their part. It would not be acceptable to have even one ship drifting powerless at the mercy of the ocean.

“Shipping is a highly integrated and efficient industry and we rely on many stakeholders in the value chain, particularly fuel suppliers and oil refiners to ensure we are all able to benefit from the long-term health benefits that this will bring.”

The shipping associations reemphasized the industry’s support of the IMO’s strategy to reduce GHG emissions from international shipping by 2050, adding that “there are no one-size-fits-all solutions” and that “there will be different solutions in different sectors.”

However, the roundtable leaders were clear that solutions would be found. “The shipping industry has already made great strides in emissions reduction in the last 10 years by reducing emissions by 10% whilst facilitating a 30% increase in global trade, but we recognize that there is more to be done to deliver on the 2050 goal,” said Fafalios.

“The industry is committed to work with all concerned stakeholders to move shipping closer to a zero-emissions future. There is much work still to do but we are clear that the shipping industry recognizes the importance of meeting these objectives.”

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Mike King

After a decade in Asia, Mike is now based in the U.K. Growing up in a prominent Liverpool trucking family, he could shrink wrap a pallet and load a 40ft container with a forklift before his teen years. More by accident than design, his career in journalism led him back to his origins. Some 20 years later and after multiple editorships, highlights include covering Asia for JOC, becoming one of the youngest ever magazine editors at Lloyd’s and running the news desk at IFW/Lloyd’s Loading List. Recent business journalism award wins include Seahorse Air Cargo Journalist of the Year in 2012, Supply Chain Journalist of Year in 2016 and News Journalist of the Year in 2013 and 2017. In 2018 he was named the International Road Transport Union Journalist of the Year. Mike also has a long history working with NGOs fighting deforestation and corruption in Indonesia, he runs a charity in Nepal and has spent a decade investigating corruption and human rights abuses on behalf of a leading commercial risk intelligence company. He loves Liverpool FC and is a regular participant in the World Bog Snorkeling Championships.

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