World News
IMO 2020: New Rules Will Cause a "Second Round" of Slow Steaming, says APL
The "IMO 2020" global 0.50% sulfur cap on marine fuel will cost the Shipping industry $60 billion per year, Nicolas Sartini, Chief Executive Officer, APL, said in his Keynote speech at SIBCON today.
Of that, he sees container shippers will incur a cost of $15 billion, and the CMA CGM Group, of which APL is s part, $1.5 billion.
This cost will unfortunately have to be borne by the customers, he added.
As part of efforts to reduce costs as a result of the new rules, Sartini says the industry will witness a “second round” of slow steaming, which will also spur a new wave of maintenance solutions such as the modification of ship bows.
Slow steaming has already become commonplace as a result of rising bunker costs.
CMA CGM has 11.7% of he world’s box shipping capacity by TEUs, according to Alphaliner.
Maersk, the world’s biggest box shipper with 17.9% of the market, recently pegged its cost of IMO 2020 at $2 billion.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| Rotterdam | 602.00 | 0.50 | 748.00 | 6.00 |
| Houston | 624.00 | 5.00 | 792.00 | 3.50 |
| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
| Global 20 Ports Average | 662.00 | 2.00 | 855.00 | 1.50 |
| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
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