Bunkerspot Survey 2020

2020 Vision

1. IMO 2020 Implementation: The transition to the 0.5% global sulphur cap has been a dominant issue. While respondents generally agreed that the IMO and regulatory bodies have made significant efforts, challenges persist with enforcement, compliance monitoring, and fuel quality concerns.
2. Fuel Availability and Scrubbers: The supply of compliant fuels such as VLSFO (very low sulphur fuel oil) has been adequate in major hubs, but concerns remain for smaller ports. Scrubber installations have offered advantages for some shipowners but face growing environmental and regulatory scrutiny.
3. Shipowners’ Preparedness: Larger operators appear well-prepared for IMO 2020, with trained crews and contingency plans in place, while smaller operators continue to face challenges in compliance and adaptation.
4. Decarbonisation Goals: IMO 2020 is seen as a stepping stone towards the broader goal of decarbonising shipping. While efforts to cut sulphur emissions are applauded, the industry faces significant challenges in adopting zero-emission technologies like ammonia, hydrogen, and wind propulsion.
5. Geopolitical and Economic Tensions: US-China trade disputes, Middle East tensions, and Latin American economic instability have impacted global trade flows, which in turn affect shipping and bunkering demand. Respondents anticipate further disruptions depending on how these situations evolve.
6. Market Dynamics: 2020 is shaping up as a year of both opportunity and risk. Larger and well-capitalised suppliers are likely to thrive, while smaller players may face difficulties due to increased costs, tighter credit, and market consolidation.
7. Future Fuels: LNG is gaining traction as a transitional marine fuel, but concerns about its long-term environmental impact remain. Research into alternative fuels and technologies like biofuels, ammonia, and fuel cells is progressing, though widespread adoption may take decades.