Shipping Industry to witness cost rise of $15 bn over IMO regulations

With IMO (International Maritime Organization) 2020 regulation around the corner, the global container shipping industry is expected to witness a cost escalation of $15 billion, experts said.

“A new component called Low Sulphur Surcharge (LSS) will be added to the freight rate when ships start using cleaner fuel.

LSS on the busy Asia-Europe trade route would be $250 for forty-foot container, while on the Far East to Indian ports, it would be $100 for the same, taking total freight rate up by the same quantum,” Vishal Kashav, senior analyst-maritime supply chain at Drewry Shipping Consultants.

The IMO has mandated that sulphur content in shipping fuel must be…

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