A surge in demand for very low-sulphur fuel oil (VLSFO) from tramp shipping operators combined with bunker barging bottlenecks are causing supply sourcing difficulties and exceptional price spikes at many ports in the first two weeks of IMO 2020.
While bigger shipping groups that prepared for the global switch to 0.5% sulphur fuels by securing bunker contracts are reporting a smooth switchover, smaller shipping outfits and tramp operators are being caught out by logistical bottlenecks, causing an inability to deliver fuels and major price spikes.
