The price of very low Sulphur fuel oil’s (VLSFO) is expected to remain under pressure until the COVID-19 pandemic is contained and the Saudi Arabia-Russia price war subsides tempting more carriers to join CMA CGM and avoid the Suez Canal, cutting millions from their operating costs.
Fueled by volume reductions, IMO 2020 surcharges, and demand ahead of Chinese New Year, sea freight rates from Asia to European ports will end 2019 on a high, and could increase further in the run up to Chinese New Year.
In 2020, Chinese New Year (CNY) is early, 24-30th January, and will catch out more unwary shippers than usual. Our CNY shipping tips will safeguard you and your supply chain.
The International Maritime Organisation’s (IMO) global emissions regulations come into force in January 2020 and will have a massive effect far outside of shipping, with as much as £220 billion of added costs across global supply chains.
From January 1st, 2020, the International Maritime Organisation (IMO) Low Sulphur Regulation will be in effect, which means all sea-going vessels will have reduce their sulphur emissions by 85%, using liquid natural gas-powered vessels, scrubbers or Very Low Sulphur Fuel Oil.
Demand for space on vessels from China continues its seasonal decline, apprarently prompting carriers to consider cancelling further voyages without notice.
Shippers from China still have no real insight of expected surcharge levels, as low-sulphur fuel prices emerge from the limited bunkering available in some hub ports, suggesting a premium of more than 30% over heavy fuel oil.
Carriers have been announcing more blank sailings on the Asia-North Europe trade as slowing demand threatens to pull down rate levels.
The World Economic Forum estimate that 90% of world trade moves by sea, and as global trade continue to increase, the busiest ports continue to grow, with 9 of the top 20 in China – and NGL freight centres at five!
The ongoing disruption at Britain’s biggest container ports shows no signs of ending and is now exposing fundamental weaknesses in the container haulage industry, that look endemic, putting the future of the industry in doubt, without immediate change and reform.