Freight Carriers: Expect Missed Sailings

May 8 2019

Citing the transition to low-sulfur fuels, shippers are being warned by container carriers about the possibility of missed sailings in the fourth quarter of this year as ships are taken out of service for a week at a time to flush out the higher-sulfur fuel. Currently, it is unknown if the transition will result in increased spot rates, though the ultimate adoption of low-sulfur fuel is projected to add $200-$300 per TEU. Under the International Maritime Association’s regulation, ships must either be outfitted with scrubbers or begin burning low sulfur fuel by January 1, 2020, but each carrier will determine its own compliance schedule. GO >>