All Eyes on MEPC 73
*New Industry Note*
As we approach one of the most impactful marine environmental regulations in history, leaders of the shipping community have addressed the International Maritime Organization (IMO) with a proposal for a more gradual introduction of the 2020 0.5% sulphur emissions limit. Although this is an unprecedented event, we can draw parallels with methods used by the California Air Resource Board (CARB) to enforce ECA regulations. In this note, we discuss the historical context of the IMO’s progression on environmental issues, the current outlook for the 0.5% regulation and parallels between shipowners’ position and methods used by the CARB, which may act as a template for smoother implementation.
The Return of Brazilian Demand
The Brazilian economy is on track to expand by 1.8% this year, a downward revision from the International Monetary Fund’s (IMF) initial expectation of 2.3% in January. This downward revision is due to lower than expected consumption, exacerbated by fuel strikes observed across the country, placing a halt on the transportation of goods. As a result, refined product demand found pressure in May, particularly for gasoline and diesel with the former finding additional weakness in a preference for ethanol consumption due to higher fuel pricing.
2018 Mid-Year Update
- Global Economic Outlook
- Oil Supply and Demand Outlook
- Tanker Tonnage Demand and Supply
- Tanker Market Technicals
- Asset Market Review and Outlook
- Year-to-Date 2018 Market Activity
- McQuilling Forecast Performance
- Short-Term Outlook 2H 2018
- 2018-2022 Outlook Update
- Analytical Appendix
*New McQ TV Available*
McQuilling Services shares views on the recent development of the OPEC/non-OPEC Production Agreement in the context of upcoming US sanctions on Iran. Global trade flows to the East are likely to adapt to the new geopolitical environment as Iran volumes are replaced by producers in the Middle East and the Atlantic Basin. From at vessel supply perspective, we are likely to see an impact from increased Iranian floating sotrage nextr year.