
By Ellen Milligan (Bloomberg). Add oil tankers breaking down at sea to the list of things shipping companies are worrying about as they brace for a once-in-a-generation overhaul to the kind of fuel the industry must consume as the industry switches to low sulphur fuel.
From Jan. 1, 2020, the vast majority of the world’s merchant fleet will have to use low sulphur fuel containing no more than 0.5 percent sulfur, down from 3.5 percent in most parts of the world today. The change is expected to upend both shipping and refining industries, with analysts forecasting higher oil prices, slower-sailing ships, and some observers even warning of risks to world trade.
Now more and more of the world’s largest shipping companies and trade groups, already mindful of spiralling costs, are saying there’s a safety risk too. Their primary worry is the lack of a single fuel type that complies with the rules. Since refineries across the world are coming up with different solutions to meet the sulfur-reduction target, owners say their ships’ engines could be damaged by inadvertently mixing incompatible products. Continue reading “Fears over engine failures as industry switches to low sulphur fuel”