Nicolas Sartini, Chief Executive Officer, APL. Image Credit: Ship & Bunker
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.