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Wood Mackenzie estimates global bunker fuel costs could rise by up to $60 billion annually from 2020 when the IMO's 0.5% sulfur cap takes effect in full compliance. Shippers may switch to low-sulfur fuels such as MGO or install scrubbers, and switching to MGO could raise freight rates by about $1 a barrel.
Higher low-sulfur marine fuel costs from 2020 are likely to lift ocean freight rates, raising the landed cost of imported feed ingredients.
woodmac.comWood MackenzieApr 9, 2018Not enough comparable past events yet for a historical read.
After 90 past bullish policy events, ULSD / Diesel moved a median +1.4% over 5 sessions (66% higher; middle half -1.9% to +4.1%), and +0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
