IMO low-sulphur regulations

IMO 2020 low-sulphur fuel cap ‘could cost shipping industry $3bn’ next year

Shipping costs could rise by $3bn next year, according to a new report that will undoubtedly unnerve shippers.
The cost rise will follow the “steep” drop associated with next year’s IMO implementation of the 0.5% sulphur cap, against 3.5% allowed now.
The report, 2019 Global Container Shipping Outlook, by Alix Partners, notes that the new cap would see the costs of shipping on eastbound Asia-Americas and Asia-Europe routes increase by up to …

The post IMO 2020 low-sulphur fuel cap ‘could cost...

https://theloadstar.com/imo-2020-low-sulphur-fuel-cap-could-cost-shipping-industry-3bn-next-year/

IMO 2020 fuel restriction may prove a ‘windfall’ for the charter market

MSC, Maersk, Cosco and CMA CGM are among ocean carriers that expect to temporarily increase their capacity this year to mitigate the downtime as ships are retrofitted with scrubbers, or for the decontamination of tanks to accommodate compliant fuels, ahead of IMO 2020.
Notwithstanding seasonal supply and demand drivers, containership owners are anticipating a charter market boost in the second half of the year, as operators prepare for the introduction of …

The post IMO 2020 fuel restriction may...

https://theloadstar.com/imo-2020-fuel-restriction-may-prove-a-windfall-for-the-charter-market/

Maersk ensures supply of low-sulphur fuel on US east coast for IMO 2020

Maersk has announced a deal with New Jersey-based crude oil refiner PBF Logistics to supply its vessels on the US east coast with low-sulphur fuel oil (LSFO) to meet the IMO 2020 regulations.
The pact is a proactive reaction by the Danish group to growing concerns that there could be shortages of compliant fuel for the 1 January 2020 start date of the IMO’s 0.5% fuel cap ruling.
And it follows the …

The post Maersk ensures supply of low-sulphur fuel on US east coast for IMO 2020 appeared first...

https://theloadstar.co.uk/maersk-ensures-supply-of-low-sulphur-fuel-on-us-east-coast-for-imo-2020/

How BCOs can navigate the choppy waters of the carriers’ new fuel surcharges

As transpacific ocean carriers approach a new season of contract negotiations with BCOs, supply chain advisors at Drewry are offering advice to help shippers navigate the impact of the new fuel surcharges.
If they are to survive, ocean carriers must be compensated for the extra cost of using low-sulphur fuels, a result of the IMO’s 0.5% sulphur cap regulations which come into force on 1 January 2020.
And several carriers have warned …

The post How BCOs can navigate the choppy waters of the...

https://theloadstar.co.uk/how-bcos-can-navigate-the-choppy-waters-of-the-carriers-new-fuel-surcharges/

Carriers in with a chance of surviving IMO 2020 if they ditch the ‘freebies’

Drewry is expecting “marginally higher contract rates, higher fuel charges and better carrier discipline” this year, with global freight rates up by about 6%.
However, in its 2019 Container Freight Outlook presentation today, for the two major east-west tradelanes, Drewry has evidence of flat new January-December contract rates between Asia and Europe, but anticipates some improvement in transpacific annual contract rates when they are renewed in May.
In regard to capacity management, …

The post

https://theloadstar.co.uk/carriers-in-with-a-chance-of-surviving-imo-2020-if-they-ditch-the-freebies/

Containership scrapping set to spike as IMO 2020 looms

The containership demolition market is set to rebound this year as owners weed out the oldest and dirtiest vessels from their fleets ahead of the IMO 2020 low-sulphur regulations.
According to London shipbroker Braemar ACM, 10 container vessels have been scrapped so far in 2019, compared with just one ship at the same time a year ago, and a total of only 54 container vessels that were sent to the breakers …

The post Containership scrapping set to spike as IMO 2020 looms appeared first on The...

https://theloadstar.co.uk/containership-scrapping-set-to-spike-as-imo-2020-looms/

Fuel price spread sheds doubt on economic case for scrubbers

Fuel prices vary, of course, but based on the economics put forward in Seatrade Maritime, it looks as if scrubbers may be a poor investment if early assessments of the price spread between high-sulphur bunker fuel and the low-sulphur version are correct. As the article notes, “should the fuel spread drop to just $40, there would be no business case for a 20MW scrubber, while a $100 spread would see …

The post Fuel price spread sheds doubt on economic case for scrubbers appeared first on The...

https://theloadstar.co.uk/fuel-price-range-sheds-doubt-on-economic-case-for-scrubbers/

Scrubber installation gathers pace ahead of new low-sulphur fuel rule

The number of exhaust gas cleaning systems (scrubbers) being installed on containerships is gathering pace, according to Drewry.
It now accounts for 10% of the global fleet by teu capacity, and more than 40% of newbuild vessels are being fitted with the onboard fuel refineries.
Currently there are 266 boxships fitted with scrubbers, for an aggregate capacity of 2.2m teu, led by MSC with 46% of its operating fleet and Evergreen with 21%.
Both …

The post Scrubber installation gathers pace ahead of...

https://theloadstar.co.uk/scrubber-installation-gathers-pace-ahead-new-low-sulphur-fuel-rule/

BIMCO weighs in with help on charters ahead of low-sulphur fuel regulations

BIMCO has published two IMO 2020 clauses for inclusion in charter parties relating to the content of bunkers after 1 January 2020, covering the transition from 3.5% sulphur content heavy fuel oil (HFO) to 0.5% low-sulphur fuel (LSFO).
The world’s largest shipping association, which counts over 65% of global tonnage within its membership, said it was also setting up a working group to examine if an exhaust gas cleaning system (scrubber) clause …

The post BIMCO weighs in with help on charters...

https://theloadstar.co.uk/bimco-weighs-help-charters-ahead-low-sulphur-fuel-regulations/

Shippers claim carriers’ 2020 fuel surcharges are too costly and too early

Shippers remain unconvinced of the justification for the size of the surcharge ocean carriers are proposing to cover the cost of compliance with the IMO’s 2020 0.5% sulphur cap regulations.
One forwarder source told The Loadstar he had already had visits from two of carriers, but was “less than satisfied” with the basis for the new surcharges.
“And they are trying to introduce their new BAFs a year early, despite fuel prices falling at the moment,” …

The post Shippers claim carriers’ 2020 fuel...

https://theloadstar.co.uk/shippers-claim-carriers-2020-fuel-surcharges-costly-early/

+ More