Global shipping lines could be paying as much as $100bn a year in annual fuel costs as a result of the recent sulphur cap imposed by the International Maritime Organization that would see sulphur decrease from 3.5%% to 0.5%, according to Ship and Bunker.
PTI previously reported that the news of a low sulphur cap could spark chaos among ship owners as they prepare for a hard hit by the increase in ship-fuel prices.
Environmental concerns have been raised a number of times relating to the harmful effects of shipping fuel on the world’s oceans. The Port of Los Angeles was heavily polluted during the USWC port shutdown as ships were unable to connect to shore power.
Moreover, arctic emissions are expected to increase 600% by the year 2025 as shippers take advantage of the new arctic shipping routes created by melting ice in the region.
Singapore’s Jurong Port has acted to decrease fuel emissions by introducing its ‘green berth’ initiative where sustainable methods are being used for the berths’ construction.
In a recent 'Container Insight' article released by Drewry Shipping Consultants, it said: “For the high-volume, big-ship routes between Asia and both North West Europe and the US, the [low-sulphur] surcharges are low and represent only a marginal increase on current freight costs.
The article added that the low-sulphur surcharges vary between carriers, with the three largest container carriers paying around the same rate along Asia-Europe trade routes.
