Questions remain over carriers’ ability to pass on 2020 sulphur costs
The climate agenda red tape that hits the global shipping industry in January 2020 poses enormous difficulties for liner shipping carriers. They need to work out whether they will be able to successfully pass on the higher fuel bill costs to shipper clients. The issue of rising costs will not only be decided by the spread between LSFO and HSFO and the methodology used in carriers’ BAF formulas. More importantly, the issue of costs will be greatly affected by the supply-and-demand picture next year amid a backdrop of rising economic and geopolitical uncertainties, a shipping conference is told
Leading freight forwarder Kuehne + Nagel is extremely cautious about securing long-term contracts into 2020 against a backdrop of high volatility in fuel prices
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