Worldwide container shipping company CMA CGM on Monday says it intends to raise the cost of shipping rates due to the approaching IMO 2020 regulation that implements a global sulphur cap of 0.5% for marine fuel.
The company has decided to favor the use of 0.5% fuel oil for its fleet and to “invest significantly” in the use of LNG to power some of its future container ships (nine ships on order) and scrubbers for several of its ships.
The measures represent a major additional cost estimated, based on current conditions, at an average of 160 USD / TEU (twenty-foot equivalent unit), it notes.
The additional cost will be taken into account through the application or adjustment of fuel surcharges on a trade-by-trade basis.
“The implementation of this new regulation, which represents a major environmental advance for our sector, will affect all players in the shipping industry,” explains Mathieu Friedberg, Senior Vice President Commercial Agencies Network.
“In line with its commitments, the Group will comply with the regulation issued by the IMO as from 1 January 2020.
“In this context, we will inevitably have to review our sales policy regarding fuel surcharges.”
Photo credit: CMA CGM
Published: 25 September, 2018
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