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Concerns over bunker fuel quality rise amid IMO2020

03 January 2020

Narrowing price spread could support MGO as an alternative fuel

As IMO2020 regulations come into effect, owners are switching to burn 0.5% compliant fuel on their vessels. Testing companies have found sediment at levels that could damage the ship’s engines after examining low sulphur marine blends obtained in Antwerp, Belgium, Houston and Singapore (Reuters). Around 60% of the fuel blends tested by AmSpec Services at the Houston port failed to meet sediment specifications. Incompatible fuel blends may produce residues that could clog and damage engines, resulting in a loss of propulsion and other associated operational risks (Platts). Stability and compatibility issues are expected to persist in the market on the back of stronger demand for VLSFO.

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