The IMO’s decision to set 2020 as a deadline to comply with fuel sulphur rules could be beneficial for shipping in the long run, says one shipping analyst.

“By 2020 shipowners will be faced with a decision: pay more for fuel or install equipment to abate sulphur emissions,” says UBS analyst Spiro Dounis.

“In our view, this ruling could accelerate the scrapping of older vessels later this decade, which is good news for vessel supply.”

Dounis