30OCT2019 - NEWS - Need of Container Carriers to Develop Greener Supply Chains to Meet IMO 2020 Cost

With the cost of compliance to new low-sulphur regulations set to top $10bn in the first year alone, container 'box' lines need to pass through the expense. But if presented correctly, they could use IMO 2020 to offer differentiated services. 

By selling environmentally friendly services effectively, lines can share these costs with customers as well as promote the ultimate objective of greener supply chains,” Boston Consulting Group said. “The entire ecosystem of value chain participants — including freight forwarders, cargo owners, and consumers — should be willing to bear their fair share of the costs.”

Lines will feel the heaviest impact from higher costs in the first year of IMO 2020 implementation, when it is expected to reach between $10bn and $12bn. Subsequent years would see smaller annual increases due to the shrinking price differential between high- and low-sulphur fuels.