World News
Drewry Launches IMO 2020 Cost Impact Calculator
Global shipping consultancy Drewry today launched a new IMO 2020-focused “Cost Impact Calculator” for shippers / Beneficial Cargo Owners (BCOs) ahead of the new global sulfur cap on marine fuel.
“With the compliance window to the IMO’s low-sulphur rule change in January 2020 rapidly closing, our analysis of the topic has highlighted widespread unease and uncertainty among shippers,” said Philip Damas, Head of Drewry Supply Chain Advisors.
One of the key issues, as highlighted in a recent survey by Drewry, was the transparency of carriers’ bunker cost recovery mechanisms.
"The new Cost Impact Calculator responds to these concerns through a new range of fuel cost verification services alongside Drewry's existing freight procurement and cost benchmarking products to help medium and larger BCOs better understand their fuel cost exposure and mitigate future cost increases," Drewry explained.
When the 0.50% global sulfur cap on marine fuel comes into force from January 1, 2020, the consultancy says the current “worst case” scenario is that fuel costs paid by carriers, and fuel surcharges paid by shippers, in global container shipping will increase by 55-60%.
Details on the Cost Impact Calculator can be found here: https://www.drewry.co.uk/supply-chain-advisors/supply-chain-expertise/imo-2020-cost-impact-calculator
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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