Trafigura‘s Preparations for the Sea Change in Global Shipping

The video discusses the readiness of the oil trading industry for new shipping rules effective January 2020, which cap sulfur content in marine fuel. It highlights market imbalances, with excess high-sulfur fuel oil and insufficient low-sulfur distillates. Companies like Trafigura are preparing by investing in vessels with scrubbers. The video also addresses concerns about open-loop scrubber bans and the need for regulatory clarity. Technological adaptations and compliance strategies are explored, with an emphasis on the short-term market impact and potential dislocations in the first six months.

What is the main issue discussed regarding the new shipping regulations effective January 2020?

• The increase in shipping costs

• The imbalance in sulfur content production

• The decrease in global oil prices

• The rise in demand for marine fuel

How has Trafigura prepared for the new marine fuel regulations?

• By reducing the number of vessels

• By investing in vessels with scrubbers

• By switching to electric-powered ships

• By halting all oil trading activities

What is a significant concern for companies regarding the new regulations?

• The open loop scrubber ban

• The cost of new vessels

• The availability of low sulfur fuel

• The increase in global oil prices

What is expected to happen in the shipping industry during the first six months of the new regulations?

• A decrease in shipping activities

• An increase in the number of vessels

• A smooth transition with no issues

• A lively and potentially messy period

What challenge do ports face with the new fuel regulations?

• Reducing the number of ships allowed

• Switching to renewable energy sources

• Balancing the types of fuels in storage

• Increasing the number of docking stations