(Jim Stinson – Transport Topics)
Incoming fuel regulations and political gridlock will bring unwelcome expenses and headaches to shipping and trucking companies through next year, according to one policy expert who spoke at SMC3 Jump Start 2019 on Jan. 29.
One big change will be the International Maritime Organization’s changes in regulations on bunker fuel, which accounts for 4% of the world’s petroleum consumption, according to Randal Mullett, principal of Mullett Strategies of Virginia.
The IMO is set to phase out bunker fuel on Jan. 1, 2020, in favor of a cleaner fuel. Because bunker fuel comes from the same distillate as diesel, the change could put pressure on diesel fuel prices — potentially pushing them up between 20% and 30%, Mullett said — while also driving up ocean fuel prices by as much as 25%. Click here to read more.
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