Uncertainty continues to surround the forthcoming IMO 2020 sulfur cap, even with a mere five and a half months to go before the January 1, 2020, start of the regulation. What will the makeup of marine fuel demand be after
Major container lines are facing higher costs due to an increase in expected bunker fuel prices from IMO 2020. To cover their costs, container lines are proposing Bunker Adjustment Factors (BAFs). BAFs are tariffs added to base freight rates that take into account changes in fuel prices, the major component of operating costs.
LSFO in particular has been of interest from the bunker industry due to its status as a relatively new marine fuel. In a recent blog post, I highlighted issues surrounding several US patents that concern the blending of hydrocarbons to create IMO-compliant LSFO. In this post, I take a look at another concern with LSFO: Compatibility.