BP’s New Fuels Carry Significant Costs for Shipping Lines — Panjiva
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BP’s New Fuels Carry Significant Costs for Shipping Lines

Corp - Shipping 608 Energy - Bunker Fuel 63 Global 722 Mode - Containerized 1005 Mode - Seaborne 1273 Theme - Rates 141

Oil refiner BP has launched its range of IMO-compliant shipping fuels ahead of the implementation of new sulfur emission regulations in 2020. Shipping lines face a significant increase in costs in 2020 given the new fuels cost $188 per ton, or 45.2%, more than high sulfur fuels according to S&P Global Platts data. CMA-CGM has stated that each $10 per ton increase in fuel costs could – excluding price increases – cut profitability by $84 million. That would suggest an unmitigated fuel cost increase could cut profit margins by 6.4 percentage points versus its 4.9% EBITDA margin in 201...

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