Monday, September 24, 2018

Shipping: "CMA CGM Says Global Sulphur Cap to Cost Customers $160 Per Container on Average"

That's serious money, say on a 10,000 TEU average voyage, $1.6 million per trip?
Jeez, no wonder the industry is freaking out.

From gCaptain:
French shipping giant CMA CGM on Monday said the 2020 global sulphur cap regulation will cost an estimated $160 per twenty-foot container or equivalent unit (TEU) to be paid by its customers in the form of a fuel surcharge.

CMA CGM, the world’s fourth-largest container shipping line by overall TEU volume, is the latest of the major ocean carriers to reveal how it intends to handle the International Maritime Organization’s low sulphur fuel regulation entering into force beginning January 1, 2020. The regulation aims to reduce the environmental impact of the shipping industry by lowering the sulphur content in the fuel burned by ships to a maximum 0.5%. Ships can also comply by installing exhaust gas scrubbers or by switching to low sulphur alternative such as LNG.

To comply with the impending regulation, CMA CGM says has opted to favor the use low sulphur bunker fuel, but it will also invest significantly in LNG fuel for its future newbuildings and order several scrubbers for some of its ships....MORE
Perhaps time to revisit Shipping: CEO of Third Largest Fleet Says "We're All Going to Go Bust".

See also:
Top Norwegian Oil Analyst Quitting DNB to Pursue 2020 Low Sulphur Fuel Rule Riches

"Maersk Asks Customers to Pay for $2 Billion Low Sulphur Fuel Bill Through New ‘Bunker Adjustment Factor’"

Shipping: "Hapag-Lloyd Expects USD 1 Bn in Extra Fuel Costs from 2020 Sulphur Cap"

Shipping: "Testing Begins On First Product Tanker Vessel Utilising Wind Propulsion Technology"

Shipping: "More than 2000 vessels will get scrubbers before 2020"

Shipping: "Why CMA CGM ordered 'game changing' 22,000 TEU LNG-powered containerships"

And many more, it's a pretty big deal.