Join Peter Sand at the Argus Fuel Oil Summit in Miami, Florida, US. The Chief Shipping Analyst will be participating in the panel discussion: 2020 is rapidly approaching – are shipowners prepared?
The event is set to take place at 9:45-10:30am EST, 21 October 2019. The panel discussion will also feature Fred Finger, Vice President of American Roll On Roll Off Carrier and Captain Melbourne Pinks, Senior Vice President of Chembulk Tankers.
How will IMO 2020 unfold?
BIMCO has been diligent in its efforts to help its members and the wider shipping industry brace for the IMO 2020 Sulphur Cap. As the world leader in standard contracts for the shipping industry, BIMCO has developed bunker clauses specifically directed at issues relating to the implementation of the sulphur cap.
BIMCO expects that IMO 2020 will bring with it a plethora of changes to the current state of the shipping industry and with said changes, beneficial opportunities might also arise for the oil tanker markets. The copious amounts of HSFO, currently consumed by the shipping industry, will not vanish into thin air come 2020, but will instead be displaced elsewhere, potentially for use in powerplants. Undoubtedly, the shipping industry will no longer consume HSFO to the same extent.
Closely follow the spread
The fuel oil price spread between HSFO and compliant fuels, such as MGO or VLSFO, will be the number to watch in the upcoming months. Fortunes will potentially be lost or made, as shipowners with scrubbers will be able to benefit from a lower price of HSFO, compared to non-scrubber retrofitted ships that will have to burn the pricier compliant fuels. For owners hoping to pass on the additional fuel costs, BIMCO has stressed that the underlying market conditions must be at the best possible balance for this to become a reality. In order to closely monitor the oil price movements ahead of the implementation of the sulphur cap, BIMCO has developed an oil price service, powered by MABUX, which tracks the oil price movements on daily basis. The service is accessible to BIMCO members on our website and set to go live towards the end of September.
Speaker Q&A with BIMCO
Peter Sand has engaged in Q&A session ahead of the Fuel Oil Summit, where he briefly touches upon some of the topics to be discussed at the summit. His answers can be accessed here.
The Argus Fuel Oil Summit will take place from 20 to 22 October 2019 in Miami, Florida. More information about the venue can be found here.