Shippers unhappy as 2020 fuel cost hikes bite

NEXT week's 20th Singapore International Bunkering Conference and Exhibition (Sibcon) is bound to include a lot of discussion on the likely effects of the Jan 1 2020 imposition of a global 0.5 per cent sulphur-in-fuel limit.

To what extent shipping customers' viewpoint will be heard remains to be seen. However, their representative organisation, Global Shippers Forum (GSF), has made its view clear in a response to Maersk Line's announcement of new fuel surcharges from Jan 1 next year. GSF says the charges are, as it puts it, to "recover presumed costs from the introduction of low-sulphur marine fuel from Jan 1 2020".

Presumed costs, eh! That seems to imply any extra charges should apply when the new regulation comes into force. No doubt many of those at Sibcon next week would be more than able and willing to explain to GSF why global shipping can't simply stop using high-sulphur fuel one day and burn low-sulphur bunkers the next.