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 With less than 10 months before the International Maritime Organization (IMO) regulation on sulfur oxide emission goes into effect, carriers and shippers alike are facing an uncomfortable uncertainty over its potential effects on costs and freight rates as they enter the 2019-2020 trans-Pacific contracting period. The 2020 deadline to reduce sulfur oxide emissions to 0.5 percent m/m is one of the most significant regulations impacting liner shipping in recent memory. Lacking an industry standard for fuel-surcharges computation or a clear picture of the underlying costs for low-sulfur fuel, participants can only roughly estimate its economic impact. Several factors affecting a carrier’s calculation of the fuel surcharges add complexity, making transparency ever so paramount to building trust on both sides. The intention of this whitepaper, produced by Seabury Maritime in cooperation with Gemini Shippers Group, is to promote open dialogue between carriers and shippers by providing insight and a general understanding around metrics used behind bunker calculations.

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IMO 2020: What Every Shipper Needs To Know

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