Speed limits for box ships the best way to hit emissions target, IMO told

By Alexander Whiteman

Mandatory speed limits could be shipping lines’ best hope of achieving the IMO’s 2030 emissions reduction targets. Shipping officer for lobby group Transport & Environment, Faig Abbasov, told The Loadstar slow-steaming could “single-handedly” achieve the target. “We’re proposing mandatory limits, based on ship type,” said Mr. Abbasov, speaking on the sidelines of the Marine and Environment Protection Committee (MEPC 73) in London. “Furthermore, our slow-steaming initiative is based on an annual average rather than per individual journey, meaning priority shipments could travel at a faster rate.” (more…)

2020 sulphur fuel cap may spark a crisis for carriers that can’t recover the cost

By Sam Whelan, Asia correspondent

IMO’s 0.5 per cent sulphur fuel cap will cause an “existential crisis” for container carriers, unless they can pass on the added bunker costs to shippers. APL Chief Executive Nicolas Sartini said carriers had little choice but to opt for considerably more expensive low-sulphur fuel from January 2020, since the alternatives – using LNG or fitting ships with scrubbers – were not viable short-term solutions. “We are 100 per cent behind the regulation as it’s good for the environment,” he told delegates at the TPM Asia conference in Shenzhen in early October. “The problem is the new fuel cost is between $250 and $350 per tonne more expensive than the fuel we buy today.” (more…)

OOCL announces bunker recovery surcharge to cover IMO 2020 compliance

By Mike Wackett

OOCL plans to begin the switch to low-sulphur fuel for its fleet of around 100 container vessels during the second half of next year, in readiness for compliance with IMO 2020.

Unlike some of its peers, the carrier has made no reference to scrubber technology that would enable vessels to continue to burn cheaper heavy fuel oil (HFO) from 1 January 2020 when the 0.5 per cent sulphur cap becomes law. The Cosco subsidiary said it had estimated the extra cost of compliance with IMO 2020 for its vessels could be more than “half a billion dollars”. (more…)

Ports need to think outside the box to make their terminals more cost-effective

By Sam Whelan

Pressure is mounting on container ports to improve efficiency in terminal operations, as wholesale change in the shipping industry continues to increase competition and drive down revenue per box. According to Mark Welles, Navis Vice-President and General Manager, Asia Pacific, terminal operators are “aggressively attacking their cost base and figuring out ways to use some of their tools to do more with less”. This includes using automation to drive incremental changes that improve operational efficiency, whether waterside or at the terminal gate. “Terminals are making the small or large changes they need to keep their businesses moving ahead against the challenges from consolidation on the carrier side,” he told The Loadstar. (more…)