'It's a complete mess': Energy market in flux ahead of a global shipping revolution, analysts warn

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On January 1, 2020, stricter fuel standards designed to significantly curb pollution produced by the world's ships will come into force.

to shipping fuel standards will come into force in less than two weeks, leaving energy market participants braced for a period of confusion and uncertainty.designed to significantly curb pollutionAmid a broader push toward cleaner energy markets, the IMO is poised to ban shipping vessels using fuel with a sulfur content higher than 0.5%. At present, the upper limit on sulfur oxides is 3.5%.

The new regulations are the result of a recommendation that came from a subcommittee at the United Nations more than a decade ago and was adopted in 2016 by the UN's IMO, which sets rules for shipping safety, security and pollution.to slash its sulfur emissions, given the pollutant is a component of acid rain, which harms vegetation and wildlife and is also blamed for some respiratory illnesses.A crane loads a shipping container branded A.P. Moller-Maersk onto a freight ship.

Xeneta's Berglund agreed that shipping liners would most likely not want to be seen taking risks when it comes to non-compliance, especially with so much attention on the intensifying climate crisis.

 

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