What is IMO 2020?
On January 1, 2020, new regulations from the International Marine Organization (IMO) will reduce sulfur content of marine fuel from 3.5% to 0.5%. Exactly how the marine industry will respond to these regulations remains uncertain, but global demand for middle distillate fuels is expected to rise by 2-3 million barrels per day and affect the volatility of fuel pricing as early as October 2019.
How does this affect your business on land?
Most experts agree, that the added draw on diesel supplies could affect trade flows worldwide, increase transportation and shipping costs, and create rapid changes in price levels and market volatility.
For your operation, this could result in higher costs, and longer wait times for the fuel you depend on to run your business.
Heavy diesel consumers with a clear understanding of how IMO regulations can impact their operation, will be better prepared, come January 2020.
What can you do now?
The best way to prepare for IMO 2020 is to keep your eye on the market, know your business’ tolerance for risks to supply and pricing, and ensure your fuel supplier is doing the same.
With 35 years of expertise in both the land and marine industries, World Fuel Services is uniquely qualified to aid you in navigating these uncertain waters. Whether it’s trucks, tanks, gas stations, or a fleet of vehicles, our team of industry experts will be there to guide you through the tools available to help protect against price volatility and making sure any disruption to your supply is as minimal as possible. Watch our webinar to learn about the impacts of this new regulation.