"The credit lines for fuel purchases will have to be expanded. Will suppliers and banks allow that?" asks Poul Woodall, director for environment and sustainability at DFDS, the largest company combining short sea shipping and logistics in Northern Europe.
“If the gap between traditional heavy fuel oil and the new 0.50 percent product climbs to $400 as some are predicting, we are talking an extra bill to industry of $80bn per annum.”
MarEx spoke to Woodall to find how DFDS is meeting the challenges.
What do you foresee regarding financing challenges for fuels and lubes towards 2020? By 2020, a new fuel will be the predominant in the marine industry. We know it will be a max 0.50 percent sulfur, but little has so far emerged about the type of product nor the likely price levels. Some pundits forecast a spread of up to $400 between the traditional fuel and the new fuel. In that case the additional bill for the operators/charterers will be significant.
