Seabury Maritime LLC is warning that ocean carriers must be transparent with shippers on how they calculate fuel surcharges. It says that ocean carriers and shippers alike are facing “an uncomfortable uncertainty” over the potential effects of the IMO 2020 global sulfur cap on costs and freight rates as they enter the 2019-2020 trans-Pacific contracting period. Seabury Maritime, a division of Seabury Capital Group LLC,has released a white paper, called IMO 2020: What Every Shipper Needs to Know, produced in cooperation with Gemini Shippers Group, one of the largest shippers’ groups in the U.S. “The 2020 deadline to reduce sulfur oxide emissions is one of the most significant regulations impacting liner shipping in recent memory,” says Seabury Maritime Vice President Nikos Petrakakos. “With fuel costs already representing more than 50 percent of total operating expenses, the IMO 2020 poses an increase too significant for carriers to absorb and stay operational.” Shippers, says Seabury “should be prepared to share in the risk of changing fuel prices through the assessment of reasonable and transparent fuel-surcharge calculations.” The whit epaper details that the lack of industry standard for fuel-surcharges computation or a clear picture of the underlying costs for low-sulfur fuel allows participants to only… continue reading
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Source: CTRM Center