Understanding IMO 2020

In 2020, the International Maritime Organization (IMO) required bunker fuel used by the global shipping industry to lower sulfur content from 3.5% to 0.5%. As a result, fuels will require blending with low sulfur products like diesel. Followed by radical changes and significant costs to all players. We experienced the IMO2020 sulfur regulations significantly increased pricing for global transportation fuels broadly. This stands to benefit those who can most efficiently produce low sulfur refined products (complex refiners) while potentially creating inflationary costs for global transportation and consumers.