This report examines the effect that ECA-zone regulation has on the optimal vessel fuel strategies for compliance. The findings of this report are trifold, and this report is coupled with a calculation tool which is released to assist ship-owners in the ECA decision making. The first key insight is the substantial impact of the current and future oil price on the optimal compliance strategies ship-owners choose when complying with the new air emission requirements for vessels. The oil price determines the attractiveness of investing in asset modification for compliance, given the capital investment required. Operating on low-Sulphur fuels remains favourable with a low oil price, as the price spread between high- and low-Sulphur does not outweigh the price of asset investments. Ship-owners who are contemplating future compliance strategies should monitor the developments of the global oil price, and consider how much time their operated vessels navigate the ECA in the future.
|Place of Publication||Frederiksberg|
|Number of pages||95|
|Publication status||Published - 2016|