Why 2020 Will Change Global Shipping Forever

The video discusses the IMO 2020 regulation requiring ships to use low sulfur fuel, impacting shipping costs and operations. Medium range tankers, like Ardmore Shipping, may benefit from increased demand. The transition involves using gas oil or diesel initially, with potential cost pass-through to consumers. Market adaptations include slowing down ships to reduce fuel consumption. The regulation's impact could last up to two years, with significant changes in shipping rates and market dynamics.

What is the main reason for the introduction of the new regulations starting January 1st, 2020?

• To promote the use of larger ships

• To lower sulfur emissions from ships

• To increase the speed of ships

• To reduce the cost of shipping

How does Ardmore Shipping plan to initially comply with the new fuel regulations?

• By burning gas oil or diesel

• By using high sulfur fuel

• By reducing the number of ships in their fleet

• By installing scrubbers on all ships

What is the expected increase in demand for Ardmore Shipping's type of ships due to the new regulations?

• 15%

• 10%

• 5%

• 20%

What is one strategy that sectors not benefiting from the demand increase might use to cope with higher costs?

• Switch to high sulfur fuel

• Slow down to reduce fuel consumption

• Reduce ship sizes

• Increase shipping speeds

How long is the transition period expected to last due to the IMO 2020 regulations?

• Six months

• One year

• Two years

• Five years