The 0.5 global Sulphur cap and its implications on the tanker industry

Abstract

The dissertation investigates the available methods with which shipowners can comply with the Sulfur regulations of bunker fuels that will be enforced in 2020. To begin with, general characteristics of the tanker shipping industry are presented, such as oil and oil products, ships carrying oil at sea, as well as sources of marine pollution. In continuation, a deep literature review is being carried out on the regulations that have been or will be adopted regarding Sulfur limit and emissions from ships’ engines. We also identify the sea areas to which stricter regulations apply, namely Emissions Control Areas (ECAs) and Particularly Sensitive Sea Areas (PSSAs). The factors that shipowners need to take into consideration and can affect their decision concerning the choice of the optimal method of compliance, are also examined. Furthermore, the available methods with which hipowner can meet the new sulfur requirements, together with the advantages and disadvantages of each method are being analyzed. Finally, a comparison between the various alternative methods is being performed using market reports, previous researches on that subject, a SWOT analysis, a cost comparison of the available methods for three tankers with different characteristics and an ECA calculator in order to calculate the payback period of the proposed investment.