Between January and March 2020, new IMO regulations will come into force which will restrict the level of sulphur that a vessel is legally able to burn.
In order to comply, an owner currently has two choices:
– To burn a low sulphur fuel (with sulphur content equal or less than 0.5%); or
– To burn an existing fuel (with sulphur content of more than 0.5%) with a scrubber fitted to remove the sulphur from the ship’s exhaust.
This regulatory change is potentially one of the biggest challenges that the industry has faced operationally. It will also impact on how the Baltic Exchange describes its benchmarks and underlying route assessments.
The Baltic is therefore engaging with its membership to ensure that the widest possible input from the industry is received. Engagement has taken place through the various Advisory Councils and also at Forums where the Baltic has spoken this year. This feedback will be presented at two working groups to which members are invited.