Crowley Fuel Index: IMO2020 – October Update
As previously communicated, the International Maritime Organization (IMO) is implementing new regulations on January 1, 2020, which further reduce sulfur content requirements of marine fuel from 3.5% to 0.5% for vessels operating outside of designated Emission Control Areas (ECAs). Within the North American, Puerto Rico & USVI Emission Control Areas (ECAs), sulfur content will remain at 0.1% as was previous established on January 1, 2015. Additional information regarding these regulations can be found on the IMO website.
To ensure compliance with these new regulations, Crowley will begin sourcing low sulfur fuel in the applicable international theaters effective November 1, 2019. Therefore, Crowley has transitioned to monitoring the average price of low sulfur fuel against the Vessel Fuel Index. Until compliant 0.5% is available in sufficient quantities and compatibility testing has been confirmed, the low sulfur fuel type monitored and sourced will be 0.1% ultra-low sulfur fuel or MGO.
As of October 15th, the average fuel price of 0.1% sulfur MGO over the previous 30 days was $621 per metric ton. Therefore, effective December 1st 2019, fuel charges will adjust to the amounts set forth in the $600 to $649 per metric ton tier on the table below and shown here.
We will continue to monitor fuel prices over the next month, and make adjustments when necessary.