Addressing the concerns and needs of Beneficial Cargo Owners (BCOs) ahead of the IMO 2020 global emission regulation, Drewry announced the launch of a ‘Cost Impact Calculator’ to help shippers prepare for and better understand fuel costs after 2020 regulation.
Namely, Drewry created the ‘Cost Impact Calculator’ based on market data, benchmarked BAF charges and fuel cost differentials between loops and carriers.
Drewry’s analysis of the 2020 sulphur cap revealed widespread unease and uncertainty among shippers. In fact, a recent survey of global shippers and freight forwarders conducted by Drewry found that three quarters of respondents had not received information from their carriers on how they plan to recover the fuel cost increases. What is more, more than half of respondents did not consider their service providers’ existing approaches as either fair or transparent.
The Cost Impact Calculator responds to these concerns using new range of fuel cost verification services along with Drewry’s current freight procurement and cost benchmarking products to help medium and larger BCOs understand their fuel cost exposure and mitigate future cost increases.
Drewry added that low-sulphur marine fuel prices per tonne will be 55% higher than current high-sulphur fuels, while the worst case scenario visions that fuel costs and fuel surcharges in global container shipping will increase by 55-60% in January 2020.
