18SEP2019 - NEWS - Failure to recoup increased low sulphur fuel costs could see lines blanking more sailings

With IMO 2020 0.5% sulphur cap on marine fuel just over 100 days from becoming law a leading shipping analyst has warned shippers that it is vital that ocean carriers succeed in obtaining their interim BAF surcharges.

Container market expert and chief executive of SeaIntelligence Consulting Lars Jensen said that a failure to obtain compensation for the extra costs relating to the preparation for IMO 2020 could result in a “significant” increase in blanked sailings.

Container lines will begin to incur additional costs in the final quarter of the year as vessels that are not equipped with exhaust gas cleaning scrubbers transition from the current mainstay of 3.5% HFO (heavy fuel oil) to a compliant maximum 0.5% sulphur content LSFO (low sulphur fuel oil).