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

Companies to pass on entire cost increase to customers

With IMO (International Maritime Organization) 2020 regulation round 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 told Business Standard.

The IMO