Shipping and energy firms revisit hedging on IMO 2020
Upcoming shipping rules set to impact fuel prices across the energy complex
Energy firms are bracing themselves for upcoming rules by the International Maritime Organization (IMO) designed to make shipping more environmentally friendly. Initially considered a regulation that would affect only shipping, the rules – commonly referred to as IMO 2020 – are now widely expected to reverberate throughout the entire energy complex.
Coming into force in January 2020, the new rules will reduce the sulphur content allowed in shipping fuel from the current limit of 3.5% to 0.5%
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