Advice on dealing with low sulfur cap

Feb 15 2019

Cost implications of meeting the IMO’s 2020 low sulfur cap are difficult to predict and there is no shortage of opinions in the market.

To assist a shipowner, The Swedish Club has obtained expert advice from a leading marine engineering consultancy and from experts in contract law to put together a guide.


The Swedish Club’s Sulfur Guide provides both technical and legal advice. It explores technical considerations when making the decision between operating with low sulfur fuels and retrofitting scrubbers and explains the legal implications, both in terms of compliance and in relation to the terms of any charterparty in place, following a decision. 


It has been written in conjunction with Tony Grainger, Marine Engineer, TMC Marine; Paul Harvey, Associate, Ince & Co and Jamila Khan, Partner, Ince & Co. All are experts in their field and provided information based on real life situations that they have encountered in their working lives.


Lars Malm, The Swedish Club’s Director Strategic Business Development & Client Relations, said: “In this area there are many unknowns facing ship operators. Will low sulfur fuel be available? If so, what will it cost? What risks do we face in the changeover period? How can we turn this to our advantage?  One thing we do know is that, at least at the beginning, the sulfur cap 2020 legislation will produce a two-tier charter market – scrubbers installed versus no scrubbers.    


“The Sulfur Guide is aimed at providing no-nonsense information to those thinking about the effect potential modifications will have both on the operation of their vessels, and existing charterparties and charterparties entered into in the future,” he added.


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