CMA CGM Says Global Sulphur Cap to Cost Customers $160 Per TEU on Average
French delivery gigantic CMA CGM on Monday stated the 2020 worldwide sulphur cap law will certainly set you back an approximated $160 per twenty-foot container or equal device (TEU) to be paid by its consumers in the type of a gas additional charge.
CMA CGM, the globe’s fourth-largest container delivery line by general TEU quantity, is the most up to date of the significant sea service providers to expose just how it plans to deal with the International Maritime Organization’s reduced sulphur gas law participating in pressure start January 1, 2020. The law intends to decrease the ecological influence of the delivery market by reducing the sulphur web content in the gas melted by ships to an optimum 0.5%. Ships can additionally conform by setting up exhaust gas scrubbers or by switching over to reduced sulphur choice such as LNG.
To adhere to the approaching law, CMA CGM states has actually decided to prefer the usage reduced sulphur shelter gas, however it will certainly additionally spend considerably in LNG gas for its future newbuildings and also order numerous scrubbers for several of its ships.
Overall, nevertheless, these financial investments amount to added expenses for carriers.
“All these measures represent a major additional cost estimated, based on current conditions, at an average of 160 USD / TEU (twenty-foot equivalent unit),” CMA CGM stated in a news release. “This additional cost will be taken into account through the application or adjustment of fuel surcharges on a trade-by-trade basis.”
CMA CGM Senior Vice President Commercial Agencies Network, Mathieu Friedberg, discussed:
“The implementation of this new regulation, which represents a major environmental advance for our sector, will affect all players in the shipping industry. In line with its commitments, the Group will comply with the regulation issued by the IMO as from 1 January 2020. In this context, we will inevitably have to review our sales policy regarding fuel surcharges.”
Last week, the globe’s leading delivery firm Maersk, sent out a letter to consumers introducing a brand-new shelter gas additional charge to be troubled carriers to assist cover the approximated $2 billion annually rise in gas expenses approximated by Maersk as an outcome of the brand-new law.