Tanker TCEs During #IMO2020 Switch Demystified

If you’ve been following the maritime industry’s #IMO2020 fuel transition to lower sulphur fuels, you know that some vessels who have installed “scrubbers” can still burn high sulphur fuel oil (HSFO), while others have to burn low sulphur fuel oil (LSFO) or Marine Gas Oil (MGO), fuels which are much more expensive. As you can see from the chart below, the price differential between low and high sulphur fuels is hovering near 80%. Given that fuel is the largest cost of operating a large ship, this is a big deal.