The Baltic Exchange recently (13 Feb) hosted a seminar to brief members on the upcoming 2020 sulphur cap regulations, their implementation the potential impact on the industry and price risk management.
The IMO’s head of air pollution and energy efficiency, Edmund Hughes, opened the seminar with an overview of legislation implementation as well as sharing the IMO view on industry response as the deadline approaches.
Justin Murphy, chief executive of The International Bunker Industry Association (IBIA), discussed the enforcement of the regulations, which could bring about some serious challenges. He commented that: “Outside territorial waters and ECA, the compliance agency is the vessel’s flag state and there are serious questions as to how diligent certain flag states will be.”
The presentations were then followed by a panel discussion, where the topic of conversation was ‘Alternative Bunker Supply and Market Dynamics.’ The panel was chaired by IBIA’s Justin Murphy and Adrian Pask, of BP Marine gave a refiners’ perspective on the 2020 regulations. John Bradshaw, technical director of the International Chamber of Shipping (ICS) discussed the decisions that owners face in enforcing the regulations and Paul Hardy, business development, Nautical Supply International covered bunker demand.
The event concluded with presentations on price risk management from Luke Longhurst, head of bunker desk, Freight Investor Services (FIS) and Elena Khatsavam director, oil and refined products, EMEA Intercontinental Exchange, who focused on the financial tools available and being traded by principals to hedge against price risk.
To view the presentations click here.
Photos of the event are also available on the Baltic flickr page.