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New maritime regulation expected to push cost of marine fuel to $70bn yearly
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New maritime regulation expected to push cost of marine fuel to $70bn yearly

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The new shipping policy of the International Maritime Organisation is expected to push cost of fueling Vessels to about $70 billion yearly.

The 2020 sulphur regulation, which will ban ships from using any marine fuel with sulphur content above 0.5 percent will take effect January the 1st, 2020, and may impose a heavy burden on owners.

As a result, liner companies are transferring a huge portion of the operating costs to shippers, a move that will increase the cost of shipping.

Despite IMO’s efforts to enforce the regulation, OPEC expects that there will be up to 30 per cent of non-compliance, due to relatively low level of scrubber penetration as well as the potential lack of compliant fuel.

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