LOGISTICS
IMO
- International Maritime Organisation introduction
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For older vessels , he says , the choice will be to switch to cleaner and more expensive biofuels “ or to simply slow down ”, to cut down on fuel consumption .
“ With new capacity entering the market , many carriers might choose to retire older vessels rather than maintain inefficient operations ,” says Hersham .
He also points out that the IMO is not forcing vessels to comply until 2024 , and that it will not prevent non-compliant vessels from sailing until 2025 .
“ This means any scrapping or idling of ships for the next two years is at the carriers ’ discretion ,” he says .
Sustainable sea shipping ‘ will cost more ’ In terms of what the new regulations will mean for sea freight prices , Hersham feels that shipping companies “ might eventually increase the cost of sea freight to help pay for new energy efficient technologies and fuels that comply with new IMO requirements ”.
“ WITH NEW CAPACITY ENTERING THE MARKET MANY CARRIERS MIGHT CHOOSE TO RETIRE OLDER VESSELS RATHER THAN MAINTAIN INEFFICIENT OPERATIONS ”
ALEX HERSHAM , CEO ZENCARGO
Having endured some of the highest ever sea shipping rates over the past three years , it remains to be seen how customers will react to such a price hike , especially as they have only recently begun benefitting from a return to pre-pandemic shipping rates .
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