# IMO aims to halve global shipping emissions – but what will it cost?  | Wood Mackenzie

> 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.

- Date: 2018-04-09 · published 2018-04-09T12:00:00.000Z
- Category: policy · region Global · magnitude low
- Page: https://feedsoft.ai/events/65686-imo-aims-to-halve-global-shipping-emissions-but-what-will-it-cost-wood-mackenzie
- Commodities: [Ocean Grain Freight](https://feedsoft.ai/c/OCEANFRT.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

Higher low-sulfur marine fuel costs from 2020 are likely to lift ocean freight rates, raising the landed cost of imported feed ingredients.

## Read by commodity

- DIESEL: bullish ▲
- OCEANFRT: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DIESEL | 2018-12-14 | [Coming changes in marine fuel sulfur limits will affect global oil markets -
		U.S. Energy Information Administration (EIA)](https://feedsoft.ai/events/61737-coming-changes-in-marine-fuel-sulfur-limits-will-affect-global-oil-markets-u-s.md) | -6.7% | -1.6% |
| DIESEL | 2018-07-11 | [Will Trucking Be Affected by New Pollution Rules for Ocean Shipping? - TT](https://feedsoft.ai/events/64213-will-trucking-be-affected-by-new-pollution-rules-for-ocean-shipping-tt.md) | -6.9% | -2.5% |
| DIESEL | 2019-02-01 | [A trade gets done in Singapore and gives a hint what will happen to fuel prices under IMO2020 - FreightWaves](https://feedsoft.ai/events/60790-a-trade-gets-done-in-singapore-and-gives-a-hint-what-will-happen-to-fuel-prices.md) | +1.4% | +6.7% |
| DIESEL | 2023-04-03 | [What to know about Saudi Arabia's stunning oil production cuts : NPR](https://feedsoft.ai/events/7950-what-to-know-about-saudi-arabia-s-stunning-oil-production-cuts-npr.md) | +2.0% | -10.0% |
| DIESEL | 2026-07-14 | [Global diesel market tightens as Russian export ban, Ukraine strikes bite \| S&P Global](https://feedsoft.ai/events/12180-global-diesel-market-tightens-as-russian-export-ban-ukraine-strikes-bite-s-and.md) | +7.1% | +9.3% |

## Sources

- woodmac.com: https://www.woodmac.com/press-releases/imo-aims-to-halve-global-shipping-emissions--but-what-will-it-cost/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.