Estimated additional cost to shipping of a 0.5% cap could come to around $50bn per year

The International Maritime Organization (IMO) is set to agree on the timetable for a new global limit on the sulphur content of bunkers in 2020 after completing a fuel availability survey well ahead of schedule.

The IMO was expected to wait until 2018 to complete the study but, under pressure to act swiftly, it contracted a specialist independent research company earlier this year. It is understood the report has now been completed.

It is currently under review by a steering committee made up of 13 IMO member states and a handful of non-governmental organisations (NGOs).

The report is central to whether the IMO commits to its original date to introduce the 0.5% limit in 2020 or wait a further five years.

The cap is much lower than the current 3.5% and would require ships to burn more expensive distillate or alternative fuels, or adopt exhaust cleaners. It has been estimated that the additional cost to shipping could total around $50bn per year.

Read the full article at TradeWinds.