The emerging situation warrants developing a new blend of oil for ships
Fuel costs are set to go up for the shipping industry over the next year, as new IMO (International Maritime Organisation) regulations kick in from January 2020. The increase could be between 25 per cent and 40 per cent over current levels, experts say.
The IMO regulations stipulate reduction of sulphur emission from ships, forcing the industry to pay more for cleaner fuels.
The regulations demand reduction in the usage of sulphur in fuel onboard ships to 0.50 per cent m/m (mass by mass) from the current limit of 3.50 per cent m/m for ships operating outside designated emission control areas (ECA). There is even stricter limit of 0.10 per cent m/m already in effect in emission control areas.
