While 2018 was an unstable year for the container delivery market, it could have been “only a warm up for 2019” in the sight of New York headquartered monitoring working as a consultant AlixPartners LLP. The company alerts that IMO 2020 laws might set you back containership drivers as high as $10 billion internationally this year as well as claims “that cost could increase significantly in 2020.”
In its 2019 Global Container Shipping Outlook, the company claims that, to a big degree, service providers’ economic lot of money rely on whether they will certainly have the ability to recuperate any type of added IMO 2020 relevant gas expenses via additional charges or whether they will certainly need to birth a minimum of a part of those expenses themselves.
“According to our analysis of large carriers that publish bunker adjustment factor (BAF) rates (tracked by maritime research consultant Drewry), carriers plying the Asia–Europe route in 2018 would have had to increase their BAF rates by 40%, or $270 per forty-foot equivalent unit (FEU), to achieve the same financial result; carriers working the EBTP route would have needed to increase of 33%, or an additional $150 per FEU,” claims AlixPartners. “Carriers will have to impose significantly higher fuel surcharges in 2019 and beyond to maintain their margins, with no guarantee that those charges will stick or that they’ll be able to realize recovery in a timely manner. Failure to do so will depress cash flow significantly.”
AlixPartners approximates that the brand-new gas guidelines might reveal service providers to as high as $3 billion in added expenses on the EBTP as well as Asia–Europe courses alone, which represent around 20% of container-shipping profession quantity. The market overall might be considering as high as $10 billion in added direct exposure, based upon 2018 costs.
“And if tight supplies of LSFO trigger higher prices,” claims the company, “gas expenses might climb up also greater, making the uphill struggle of price healing much more immediate.
Read the AlixPartners 2019 Global Container Shipping Outlook HERE
