Friday, 25 January 2019 15:22

Low-sulphur costs hamper trans-Pacific contracting

545 Low Sulpher Cost Impacts


Major container lines are already increasing the cost of service contracts for North America to account for the higher costs associated with the low-sulphur global fuel mandate. The true cost won’t be known until Q4, when carriers will begin actually using the low-sulphur fuel to run their ships. The IMO's global sulphur cap that takes effect on Jan. 1, 2020 is estimated to add about $150-200 per TEU to trans-Pacific carriers’ costs. However, given the volatility in fuel prices, there are a range of estimates of the cost of low-sulphur fuel for late 2019.

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