The global low-sulfur mandate that will take effect on Jan. 1, 2020, presents a potential challenge to the container shipping industry and its customers. The low-sulfur rule, an IMO sulfur cap on bunker fuel, will impact annual service contracts and spot rates, also could trigger further slow-steaming, according to carriers’ own warnings, and, as a result, tighter capacity. The higher fuel costs could reduce the attractiveness of all-water services. Shippers and stakeholders should be aware of additional costs of meeting the mandate —ocean carriers may resort to reducing capacity to recoup costs.
To learn more about the IMO low sulfur mandate click here.
- Posted by Joe DeSilvetri
- On August 23, 2019
- 0 Comments