Seabury Maritime LLC is alerting that sea providers should be clear with carriers on just how they determine gas additional charges. It claims that sea providers and also carriers alike are encountering “an uncomfortable uncertainty” over the prospective results of the IMO 2020 worldwide sulfur cap on expenses and also products prices as they go into the 2019-2020 trans-Pacific having duration.
Seabury Maritime, a department of Seabury Capital Group LLC, has actually launched a white paper, called IMO 2020: What Every Shipper Needs to Know, generated together with Gemini Shippers Group, among the biggest carriers’ teams in the united state
“The 2020 deadline to reduce sulfur oxide emissions is one of the most significant regulations impacting liner shipping in recent memory,” claimsSeabury Maritime Vice President Nikos Petrakakos “With fuel costs already representing more than 50 percent of total operating expenses, the IMO 2020 poses an increase too significant for carriers to absorb and stay operational.”
Shippers, claims Seabury “should be prepared to share in the risk of changing fuel prices through the assessment of reasonable and transparent fuel-surcharge calculations.”
The whit epaper information that the absence of market requirement for fuel-surcharges calculation or a clear photo of the underlying expenses for low-sulfur gas enables individuals to just about approximate its financial effect. Several aspects impacting a service provider’s computation of the gas additional charges include intricacy, making openness vital to developing trust fund on both sides.
Kenneth O’Brien, Chief Operating Officer of Gemini Shippers Group, commented: “Through our collaboration with our partners at Seabury Maritime, we have identified the inherent risks and cost drivers represented by the IMO 2020 regulation. Our desire to add transparency to the issues will help shippers and carriers alike navigate the 2019-2020 contracting season.”
Petrakakos claims “the intention of this white paper is to promote open dialogue between carriers and shippers by providing insight and a general understanding around metrics used behind bunker calculations.”
“Transparency is key to creating trust that the carriers are truly just passing these new costs in an equitable way. Most fuel data may seem like an important trade secret, but more transparency can actually lead to deeper relationships and less pushback from rightfully suspicious customers, while better highlighting carriers’ efforts to improved fuel efficiency and lower costs as a result. Lack of clarity can even cause undue blowback to carriers in some cases, simply because of the lack of understanding of the metrics, a self-inflicted wound for carriers,” wraps up Petrakakos.
Seabury Maritime claims that it can assist both carriers and also providers in producing common count on by assessing the information from an independent expert’s perspective. All celebrations profit when there is a clear understanding of the underlying expenses for providers to give their solutions to carriers. A clear approach to determine gas additional charges and also the effect of low-sulfur gas is essential to safeguarding the monetary health and wellness of providers and also carriers supply chains.
The white paper existed throughout The Journal of Commerce’s Trans-Pacific Maritime Conference held March 3-6 in Long Beach, CA.
You can download it HERE
