New IMO regulation/implementing of new Bunker Adjustment Factor for 2020

New IMO regulation/implementing of new Bunker Adjustment Factor for 2020

Starting from January 01 of 2020 a new regulation of IMO (International Maritime Organization) reg worldwide reduce of ships air pollution will come into force. Regulation has lots of rules and factors but main issue is following – nowadays vessels can use fuel with up to 3.5% sulphur content (outside Emission Control Areas) while the new regulation will reduce the global sulphur cap to 0.5%. Subject step will significantly decrease the amount of sulphur coming from vessels in order try improving global health and environmental conditions. The same time such regulation will significantly influence of logistics cost change since owners of the vessels will have to use adjusted fuel which is mpre expensive then regular one.

So far non of container lines declares firm figures how rates are going to change, the same time internal information (based more on rumors and individual forecasts in container lines) says that expectations for Ukraine logistics market to be following (figures are stated as addons above current market levels):

* import shipments to Ukraine
– USD 200/20′
– USD 400/40′

* export shipments from Ukraine
– USD 100/20′
– USD 200/40′

It been declared, that notices reg new adjustment fee to be announced firmly latest Nov 30 – our assumption is that container lines as usual all will keep close eye on competitors decisions and try to make their own decision what figures to state last possible minute.

From our side will keep you informed reg development for subject issue.