Global Maritime Forum - Singapore
SINGAPORE - Arlie Sterling, President of Marsoft, the world’s largest independent maritime advisory service, was a participant at the recent Global Maritime Forum in Singapore.
Decarbonization was a fundamental theme of the forum and one key outcome was the endorsement by the GMF of a carbon levy for shipping. Leading owners, charterers and banks have recommended that the IMO take the necessary steps to impose a carbon levy on bunker purchase. The proceeds of the levy would be to fund R&D, de-risking first movers, and the upstream investments, necessary to provide the new fuels required to decarbonize the industry. The specific levy proposed amounted to $30/tonne of bunkers in 2020 rising to $100/tonne by 2030.
The likely impact of the industry’s decarbonization initiatives and carbon levy will emerge later in 2020; in particular whether ships more than 10 years old will depreciate more rapidly than historically observed. There was widespread discussion that the decarbonization/carbon levy initiatives could slow the pace of ordering until the net zero carbon “fuel of the future” was identified. LNG is likely to be getting a lot of interest because it is so cheap and because the cost of the incremental dual fuel capability (for large ships) has fallen so much.
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