Tackling 2020: the impact of the IMO and how shipowners can deal with tighter sulfur limits
This special report from S&P and Platts documents the issues for ocean carriers, and the strategies they might employ. The report is detailed and interesting, and important reading for shipping executives.
Ocean shippers will be more tightly coupled into world petroleum markets, and their prices will be more volatile and depend on other supplies and demands, more so than before. There’s potential for the supply of proper bunkers and its location to alter trade routes and even the profitability of some export trades, especially in agricultural products.
And the strategies ocean shipping owners can use are limited; they include noncompliance, too, which may get them in a lot of trouble, but would save a lot of money in upfront expense for scrubbers, new ships, or for a specialized fuel rather than MDO.
The report is well worth a read. You have to register to get it, but it’s free.
The International Maritime Organization’s decision to tighten sulfur limits on bunker fuel has left shipowners with a dilemma they continue to brush aside. S&P Global Platts weighs up the options and the implications for the shipping industry, the market and refiners as the 2020 deadline approaches.
Download the report…
Drewry’s Container Insight Weekly had this detailed piece on West Coast usage by large ships. The major takeaway: bigger ships are calling but it may be too soon for many of the ULCC (18000 teu or so) to call yet, due to port related delays. There’s also a sort of bedlam caused by the reshuffling alliances; the firms in each alliance have different preferences as to which terminal to use at the ports. Hence there’s no stability in where a ship might call on each visit. To fix this will require compromise on ocean carrier objectives, like “always use our affiliated terminal when you come to LA”. Stability would make it simpler for the terminals to plan how to unload or load and get the customers’ cargoes on the way to their destinations. That part is challenging enough for the ports terminal operators today. Everyone has to work together to improve the customer (cargo owner) journey (literal and figurative!!!).
The number of containerships of 13,000 teu or above deployed on the Asia-US West Coast trade has nearly doubled since the start of 2017. How long before the mega-ships arrive?
Source: Drewry – Weekly Feature Articles – West Coast upgrade
Posted in Logistics, Ports, Production Operations, Shipping, Strategy, Supply Chains
Tagged alliances, big ships, container shipping, intermodal, Logistics, mergers, ocean shipping, Shipping, supply chains
Not everyone thinks assembling big data is a good idea! Perhaps they have alternative facts.
I just subscribed to this source. Even though they do not disclose who they are, it might provide interesting information.
Labor-related concerns were cited by the Senate, but the project will likely move forward without the funding.
Source: FMC plan to develop pilot information portal fails to receive Senate funding | Supply Chain Dive
Posted in Advanced Computing, Logistics, Ports, Production Operations, Quantitative Methods, Supply Chains
Tagged analytics, computing, container shipping, intermodal, Logistics, ocean shipping, ports, Production Operations, Shipping, supply chains, technology