IHS: Shipowners, Refiners ‘Vastly Unprepared' For Low-sulfur Deadline
Professional Mariner|December/January 2018

The refining and shipping industries are scrambling to adapt to the global low-sulfur bunker fuel deadline that is less than three years away.

Gary Wollenhaupt
IHS: Shipowners, Refiners ‘Vastly Unprepared' For Low-sulfur Deadline

The International Maritime Organization (IMO) deadline for using bunker fuel with 0.5 percent sulfur content is set for Jan. 1, 2020, five years earlier than many previously expected. Some vessel owners have already added scrubber systems and taken other steps to comply with the tougher emissions rules.

However, both the global refining and shipping industries face significant investments and rapid change before widespread compliance can be achieved, according to an IHS Markit report released in August.

“The two industries are vastly unprepared,” said Sandeep Sayal, senior director of refining and marketing research for IHS Markit and one of the authors of the report. “Neither has made the necessary investments for compliance, which means that the 2020 implementation date will result in a scramble. Both industries are taking a waitand-see approach until firm signals are in place by the IMO for compliance with the regulation.”

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