4
COST IMPLICATIONS FOR SHIPPERS
AS IMO 2020 REGULATORY CHANGES TAKE EFFECT
IF: Marine carriers comply by switching to low-sulfur fuel oil...
THEN: Shippers can expect higher costs associated with their
marine freight due to the increased cost of lower sulfur content
fuel oil.
IF: Scrubbers are installed enabling carriers to continue consuming HSFO...
THEN: Shippers should expect the cost of scrubber installation to be
accounted for within carriers’ surcharges as a means of recovering their capital
expenditures, even though the cost of HSFO is anticipated to be considerably
lower than low-sulfur means of compliance.
IF: Marine carriers opt to use LNG as an alternative fuel...
THEN: Shippers can expect increased costs associated
with a less
accessible and more expensive fuel. In the long run, however, costs will
remain more insulated as regulations continue to change.
IF: Carriers choose not to comply with new sulfur regulations...
THEN: Shippers should be aware that their marine supply
chain is
susceptible to significant risk, because the industry has yet to define the
penalty for non-compliance.
Learn More: BreakthroughFuel.com/Solutions