In response, the International Maritime Organization has implemented strict regulations, including the 2020 sulfur cap, which drastically reduced the allowable sulfur levels. Its slow combustion allows for the extraction of maximum energy per liter, translating directly into lower operational costs for shipping companies.
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While LNG offers cleaner combustion, the infrastructure required for storage and bunkering is not yet ubiquitous. This price difference translates into millions of dollars in savings for shipping conglomerates.
Environmental Regulations and Challenges Despite its economic efficiency, fuel oil cod faces intense scrutiny regarding its environmental impact. The economics of global trade rely heavily on the stability and availability of this energy source, making it a critical component of international supply chains.
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While demand for the high-sulfur variant has plummeted, the low-sulfur version maintains a steady presence in the market. The primary benefit is its cost-effectiveness compared to lighter distillate fuels like diesel or marine gas oil.
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