IMO 2020

BIMCO: Shipowners ‘urgently’ need fuel management plan

‘Fuel availability and compatibility is out of the shipowners’ and operators’ hands,’ says LR spokesman.

Published

8 years ago

September 24, 2018

Admin

The following article from the September issue of BIMCO magazine ‘Bulletin’ talks on the urgency for shipowners to create a bunker fuel management plan:

With the majority of ship operators expected to choose low-sulphur fuel over scrubbers to comply with the new IMO sulphur cap regulation, all eyes are on fuel suppliers and whether they can provide what the industry needs.

According to Niels Henrik Lindegaard, Managing Director of Maersk Oil Trading, the refinery industry describes the IMO sulphur cap regulation as the biggest shake-up in the industry’s history – and while the bunker suppliers will face a transition period, shipping needs to plan carefully.

“Probably, the biggest concern for the bunker industry is that the product they have to sell in 2020 does not yet exist,” he says.

New “blend” fuel not as straightforward as it seems
Some of the concerns about fuel supply are highlighted in a research report from US investment bank Morgan Stanley. The report points out that high-sulphur fuel oil (HSFO) accounts for about 70% of bunker fuel used by ships today. As HSFO contains roughly 3.5% sulphur, and most ships are expected to switch to compliant low-sulphur fuel on 1 January 2020, almost half of the end market for marine fuel oil will shift to other parts of the barrel.

Whether new low-sulphur fuel blends will be compatible between different ports, even from the same supplier, and whether there will be a balance between demand and supply, are major concerns for shipowners and operators. There are also concerns about the availability of HSFO for those ships fitted with scrubbers, as demand for HSFO is expected to plunge, while demand for very low-sulphur fuel oil (VLSFO) is expected to soar.

“Using a new fuel ‘blend’ in a ship is not as straightforward as it seems. With no standards yet in place for these new fuels beyond sulphur content – for example, viscosity, pour point and flash point – shippers have uncertainty about how they will behave in an engine,” Martijn Rats, Equity Analyst at Morgan Stanley, says. He believes the new regulation also raises the question of HSFO availability at ports, some of which may decide to no longer supply the heavy fuel oil.

“Expect initial imbalance and price fluctuation”
Maersk Oil Trading expects that there could be a delay in supply of the new compliant low-sulphur blends in the beginning – when the sulphur cap regulation kicks in in 2020.
“The new low-sulphur fuel products will probably be available later, once the oil companies and refineries really see a pick-up in demand from players. This is likely to create an initial imbalance in demand and supply, also in different regions, as well as increasing price fluctuations and higher prices. We may see a temporary shift to burning gas oil until the 0.5% fuel becomes available,” Lindegaard says.

Furthermore, the new products may not be compatible with products from other ports and other suppliers, he adds.

With regard to heavy fuel oil, Maersk Oil Trading expects there will be enough availability at major ports from the beginning, but that it could take longer for smaller port areas to adjust the supply of heavy fuel oil.

Cheaper to plan before, not after, 1 January 2020
Whether ships will need low-sulphur fuel or heavy fuel oil, a fuel-management plan is urgently needed, according to Lindegaard and independent risk management organisation and classification society Lloyd’s Register Group.

“If I am going to give advice to anybody, it would be to look at your fuel transition, put a lot of effort into your fuel-management plan and make sure you have run it in before 1 January 2020,” James Forsdyke, Hong Kong and Taiwan Area Manager for Marine and Offshore at Lloyd’s Register says.

“The fuel availability and compatibility is out of the shipowners’ and operators’ hands. All they can do is scenario planning. At the end of the day, it is cheaper to wash out your lines with gas oil than it is to take the vessel off hire if you are not compliant,” he says.

Lloyd’s Register advises industry players to make sure they understand who the suppliers in the market are, and which compatibility issues there are between each of those suppliers. Forsdyke also advises to run tests, work out how to buy the necessary fuel and work out the credit terms.

Maersk Oil Trading has six tips for the shipping industry to take precautions now and start planning:

Put a procedure in place for how to make sure that all “old” high-sulphur fuel has been burned ahead of 1 January 2020.
Put a procedure in place for how to clean the tanks if that becomes necessary.
Understand the respective flag state and port state control’s requirements for compliance documentation.
Plan the procedure for how to handle each low-sulphur fuel batch in case the batch is not compatible.
Actively use laboratory results from the tests of the bunkered fuel to understand how to handle each batch on board.
Consider increasing fuel reserves on board – at least temporarily – until enough experience with the new fuel types has been acquired.

Note: Readers interested in browsing through the entire September issue of BIMCO magazine ‘Bulletin’ can find it here.

Photo credit: BIMCO
Published: 24 September, 2018

Ammonia

AM Green plans to build green ammonia plant at Indian port

Initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes, says VOC Port Authority.

Published

2 months ago

June 3, 2026

Admin

VO Chidambaranar (VOC) Port Authority on Friday (29 May) said it has signed a Memorandum of Understanding (MoU) with India’s ammonia producer AM Green Ammonia to collaborate in the development of a green ammonia production plant.

The plant will have a capacity of one million tonnes per annum (MTPA) at Tuticorin.

The initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes.

The project is expected to support the development of green fuel corridors connecting VOC Port with major ports in Europe and Asia, thereby strengthening India’s position in the global green fuels value chain.

VOC Port also signed a Memorandum of Understanding (MoU) with Bureau Veritas (India) Pvt. Ltd., to collaborate on Green Port certification, emissions accounting, ESG reporting, safety validation, development of green bunkering practices, and establishment of a Centre of Excellence for green fuels and sustainability.

The port also plans for an upcoming 750 m³ green methanol bunkering facility.

Photo credit: Naveed Ahmed on Unsplash
Published: 3 June, 2026

Port & Regulatory

Study: Major drop in ship sulphur emissions confirmed following IMO regulations

National Centre for Atmospheric Science study found that the average sulphur content in ship fuel dropped nearly tenfold in open ocean areas following IMO’s 2020 regulation.

Published

8 months ago

December 8, 2025

Admin

Recent global regulations have significantly reduced sulphur emissions from ships, helping to improve air quality in coastal regions – confirmed by a recent international study led by researchers at the National Centre for Atmospheric Science.

The research, published in Environmental Science: Atmospheres, used aircraft and ground-based instruments to measure sulphur dioxide and nitrogen oxides emitted by ships in the North-East Atlantic and European coastal waters between 2019 and 2023.

The team found that the average sulphur content in ship fuel dropped nearly tenfold in open ocean areas following the International Maritime Organization’s 2020 regulation, which capped sulphur content in marine fuel at 0.5%.

Before the change, many ships exceeded the previous 3.5% limit. After 2020, only a small number of ships were found to breach the new standard.

In European sulphur Emission Control Areas (SECAs), such as the English Channel and the Port of Tyne, sulphur levels were even lower – well below the stricter 0.1% limit. Interestingly, ports outside these zones, like Valencia in Spain, also showed low sulphur levels, likely due to EU rules requiring cleaner fuel when ships are docked for extended periods.

This is the first study to use aircraft-based measurements and predictions from the Ship Traffic Emission Assessment Model (STEAM3) to assess ship emissions outside of sulphur control zones since the 2020 regulation came into effect. The findings support the widely held view that ships now emit around seven times less sulphur than before the rule change – an important step toward cleaner air and healthier coastal environments.

Note: The research, titled ‘SO2 and NOx emissions from ships in North-East Atlantic waters: in situ measurements and comparison with an emission model’ can be found here.

Photo credit: shraga kopstein on Unsplash
Published: 8 December, 2025

Interview

IBIA Annual Convention 2025: ‘Exciting times’ for post IMO 2020 bunker suppliers, states Equatorial

Choong Sheen Mao, Chief Operating Officer, Equatorial, describes to Manifold Times the pre/post IMO 2020 challenges and evolution of bunker suppliers.

Published

9 months ago

October 31, 2025

Admin

The International Bunkering Industry Association (IBIA) will be hosting its flagship Annual Convention in Hong Kong at the Hong Kong Convention Exhibition & Convention Centre between 18 to 20 November 2025, as part of Hong Kong Maritime Week.

Choong Sheen Mao, Chief Operating Officer, Equatorial Marine Fuel Management Services (Equatorial), speaks to bunkering publication Manifold Times about the challenges of a post IMO 2020 bunker supplier.

MT: How does Equatorial continue to offer customer assurance and maintenance of marine fuel quality to ISO8217 standards despite increasing complexity of bunker fuel blends?

We maintain our focus to provide compliant, quality and competitively priced products to our customers. There is no shortcut. We source our products from a wide range of cargo producers and suppliers. We continue to be strict and vigilant with our testing programme for our products before delivering them to our customers. Equatorial has deepened our engagement with the wider industry to have a better and up-to-date understanding of the existing and new marine fuels.

MT: Can you share the evolution of commercial marine fuel procurement, blending and trading strategies on the back of increasing fuel types (pre/post IMO 2020)?

Pre IMO 2020, the main types of marine fuel procured and consumed by vessels were high-sulphur fuel oil, marine diesel oil and marine gas oil. Trading strategies were therefore closely linked to that within the oil industry.

However, many of the new fuel types are from other industries. For example, biofuels, methanol and ammonia are mainly products from the chemical and agriculture industries. There are marked differences between these industries and the energy industry (in particular, the marine fuels industry). LNG is from the gas industry which is distinct from the oil industry.

Without an existing liquid paper market for many of these commodities (especially as a marine fuel), the price risk management is less straightforward. Furthermore, commodity prices are no longer the sole consideration for price itself. The price of compliance must be considered. This could range from guaranteeing the origin of the marine fuel, its sulphur properties as well as its carbon intensity. The list goes on.

MT: Operational wise, what are the changing role and responsibilities of a bunker supplier to date, compared to before IMO 2020?

The role and responsibility of a bunker supplier have evolved. Fundamentally, it has been about providing quality marine fuels at competitive prices. Quantity assurance has been a critical concern which led to the mandatory implementation of the mass flow meter system for bunkering in the Port of Singapore. Interestingly, due to the nature of credit terms in the bunker industry, bunker suppliers also performed the role of “bankers” by extending favourable credit terms to shipowners and charterers.

These days, post IMO 2020, things have become even more complicated. Today, a bunker supplier retains the abovementioned roles and responsibilities, and much more – it has to ensure compliance with a plethora of rules and regulations. Compliance not only with sulphur cap requirements, but with international and regional sanctions and restrictions unrelated to the quality of the marine fuel itself. In fact, especially with alternative low- and zero-carbon marine fuels, this means compliance with standards, rules and regulations on sustainability such as the European Renewable Energy Directive and/or International Sustainability and Carbon Certification. There is also the need to comply with increasingly stringent safety regulations on both conventional and alternative marine fuels.

In addition to the above, a post IMO 2020 bunker supplier is still expected to supply compliant and quality fuel at competitive prices.

MT: Equatorial is Singapore’s largest local-born supplier; what is the next big thing for the company?

Equatorial continues to adapt and improve with the times, while maintaining its core values – Integrity, Teamwork, Commitment, Proficiency and Quality, and Safety and Environment. The bunker industry is a highly competitive one, and it is our intention to keep our competitive edge and remain relevant. This means that we have had to step out of our comfort zone and embrace the two mega trends of our time – digitalisation and decarbonisation.

We have been early adopters and developers of the electronic bunkering note as part of our own digital bunkering efforts. We have diversified our product offering to include low carbon marine fuels and are proud to be one of the pioneers for bunkering B100 biofuels earlier this year. This was made possible by the arrival of our IMO Type II chemical and oil bunker tankers. These same bunker tankers are also capable for carrying and delivering methanol. Equatorial has invested in an LNG bunkering vessel (LBV) newbuilding that is set to be delivered in Q3 2027. We are also involved in a study to develop low- or zero-carbon ammonia bunkering in Singapore.

These are exciting times.

Note: Choong Sheen Mao is amongst panellists featured in ‘Session Three: Bunker Sellers Panel’ at the IBIA Annual Convention 2025.

Join the Conversation

With over 300 delegates expected, the IBIA Annual Convention 2025 is set to be a defining moment for the marine fuels industry. Registration is now open via the IBIA Annual Convention website.