Alarmed by the cost involved in becoming compliant
with the low-sulfur fuel rule and its projected global economic cost which as
WSJ reported could reach upwards of $100 billion, of which about $10 billion
will impact the U.S. economy,the Trump administration has suggested delaying
the Jan. 1, 2020.
The World Shipping Council, however, saw any delay in
implementation and diversion from the Jan 1, 2020 would be harmful to the
“Any uncertainty or delay at this point would confuse markets and
penalize ship owners and fuel suppliers that are already investing to ensure
compliance,” said John Butler, president and CEO of the World Shipping Council.
“Adding uncertainty to an already expensive regulation would increase, not
decrease, the potential for economic harm.”
Organization of Petroleum Exporting Countries (OPEC)
considered IMO’s new rule effective Jan.1, 2020, “will be disruptive to both
the shipping and refining sectors”.
“Due to a sudden switch in the fuel mix, potential shortages of
compliant fuel are possible, especially middle distillates, which could spread
to other sectors too. It is hoped that there will be sufficient flexibility in
the refining system in order to avoid any extreme events in the years to come,”
IMO appears intent on implementing the new rule as
specified and it is standing its ground on the enforcement of the 2020 sulfur