IMO 2020: What shippers need to know now paid flexport
than typical bunker oil. If refineries do not have the capacity to meet the demand and if carriers do not adequately prepare, shippers will be at risk of receiving a new set of emergency bunker surcharges that are 15 to 20 percent higher. will cause its yearly fuel costs to top $2 billion , and announced its plans to shift those increased fuel costs onto its customers before the regulations take effect.
to absorb a large proportion of these costs, which stem from the following options for their carriers:Ships can make the switch from high-sulfur fuel oil to marine gas oil . This is the easiest and quickest solution, but will likely lead to an MGO fuel shortage if most carriers choose this option. MGO is approximately 50 percent more expensive than HSFO.Vessels can continue using HSFO as scrubbers clean their exhaust gas.
Saving costs wherever possible will be the difference between successfully navigating the new regulations or succumbing to the new costs of doing business. In addition to planning ahead, those with access to data-driven platforms should optimize their freight allocation across modes and maximize efficiency to mitigate the economic impact of the regulations, which include:
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