Preparing for the Big Switch

When we entered this new era of environmental legislation, one of the big unknowns was the characteristics of new compliant fuels. Early experiences suggest that the shipping industry has adapted well to the switch to the new very-low-sulphur fuel oil (VLSFO) products, but the huge variability in their characteristics has brought issues.

Before the introduction of the new sulphur cap at the start of 2020, the anticipation of cheap high-sulphur fuel oils made a scrubber, otherwise known as an exhaust gas cleaning system (EGCS), a very attractive proposition. Events of the last year have been largely unprecedented in modern times, and one of the consequences is that the price differential between the high-sulphur residuals and compliant products, whether distillates (e.g. MGO) or VLSFOs has become rather slender. Of course, there may be other financial or operational reasons why a shipowner is planning to fit a scrubber, so it’s important to get it right.

We have put together three guides to help you through the big switch. Please get in touch with your usual North contact if you have any questions.