IMO 2020 Will Lead to More Volatility, Disruption: Ardmore Shipping CEO

The IMO 2020 regulations limit sulfur content in maritime fuel, impacting the shipping industry. Shippers can install scrubbers or use low sulfur fuels, but both options have challenges. The industry is unprepared, leading to potential disruptions and increased demand for gas oil. The regulations affect shipping operations, refining processes, and global fuel supply, causing regional shortages and trade shifts.

What is one of the main challenges associated with open loop scrubbers?

• They increase sulfur emissions.

• They are inexpensive to install.

• They are banned in all countries.

• They release sludge into the ocean.

What is a potential consequence of increased demand for low sulfur fuels?

• A reduction in global shipping activity.

• Financial strain on smaller shipping firms.

• An oversupply of heavy sour crude.

• A decrease in diesel margins.

Why might the industry face disruptions due to IMO 2020?

• All ships have already installed scrubbers.

• Traders are overstocking fuel supplies.

• There is an abundance of compliant fuel.

• The industry is waiting for demand to dictate actions.

What is a likely outcome of strong tanker rates?

• The demand for gas oil will decrease.

• There will be fewer cargo movements.

• Ships will speed up, increasing fuel consumption.

• Ships will slow down to conserve fuel.

What is a significant challenge in transitioning to new fuels?

• The production capacity is insufficient.

• The production capacity is not in the right locations.

• All regions have an excess of diesel.

• There is no demand for new fuels.

Which regions are expected to face diesel shortages due to IMO 2020?

• Northern Europe and Singapore

• North America and Australia

• Middle East and South Asia

• South America and Africa

What is a potential long-term effect of the IMO 2020 changes?

• A year or more to reach equilibrium.

• Immediate stabilization of fuel markets.

• A reduction in refinery throughput.

• A decrease in global shipping rates.