New Sulphur Cap Norm: Will It Impact Indian Seaborne Coal Trade?
Come January 1, 2020, and the global seaborne trade industry would be facing rough weather. Naturally, seaborne coal trade would be facing turbulent sea too.
The recent regulation of global sulphur cap of 0.5 percent on marine fuels would come into effect on January 1, 2020. The new norm, to be imposed by the International Maritime Organisation’s (IMO) Marine Environmental Protection Committee, is a sharp decline from the current limit of 3.5 percent. In other words, it means that from January 2020, all vessels will need to burn cleaner and hence more expensive fuels to comply to the new norm.
According to experts, the most likely impact is a sharp increase in costs for ship owners who would, in all likelihood, pass on the same to the customers. For all users, this will result in a dramatic, long-term increase in freight rates.
A rough estimate shows that cost enhancement would be ranging from a modest $5 billion to $70 billion a year. This would be problem for not only the shipping industry but section of unwilling ship owners who would definitely try to pass on the lion’s share to their customers.
Bu hikaye Coal Insights dergisinin January 2018 sayısından alınmıştır.
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Bu hikaye Coal Insights dergisinin January 2018 sayısından alınmıştır.
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