Given that the effects of climate change are becoming more and more evident, measures to mitigate air pollution are being increasingly observed worldwide. The shipping industry follows this trend, and regulations to reduce emissions are being imposed every year. Recently, the International Maritime Organization enforced a 0.50% m/m Sulphur cap on all operating vessels, through a series of regulations collectively known as “IMO 2020”, effective from January 2020. This thesis examines the impact of compliance to these regulations that vessel management companies experience, by presenting two case studies based on data taken from two existing bulk carriers. Three options of compliance are considered as follows: i) Installing Scrubbers and operating with Heavy Fuel Oil (HFO), ii) Operating with cleaner fuels such as Very Low Sulphur Fuel Oil (VLSFO), iii) Converting to Liquified Natural Gas (LNG) fuel operation. The study indicates that options i) and iii) are accompanied by significant capital expenditures (CapEx), however the Scrubber option is shown to be the most cost-effective considering 5 and 10-year depreciation scenarios. Other important parameters such as the vessels’ age, the management companies’ cash flow and risk appetite, and the hire rates are shown to influence the results. Lastly, an attempt is made to correlate the findings of this thesis with the current situation of the industry.
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