Panalpina warns customers of potential disruption as IMO 2020 draws close

Major freight forwarder Panalpina has warned its ocean customers of potential disruption to supply chains ahead of the IMO 2020 sulphur cap.

“The regulators have laid out the rules, but the path for ship owners, operators and carriers to complying with the low sulphur limit remains rocky,” Panalpina

New bunker surcharges announced by container lines have already drawn harsh criticism from shippers and forwarders as they move to pass on the additional costs of compliance to their customers.

Read more: CMA CGM say sulphur cap to cost an additional $160 per teu

“These costs will be implemented sooner rather than later. Panalpina expects implementation already at the end of Q3 or beginning of Q4,” the company said. Panalpina has already introduced its own global bunker mechanism earlier this year and it is updated quarterly.

With concerns over availability of fuels, the quality of blended compliant fuels and ships be drydocked to fit scrubbers Panalpina is warning of disruption to its customers.

“There is a considerable potential for supply chain disruptions due to delays in fuel supply, denied port calls, retrofitting or downtime of ships. Expect choppy waves in the months leading up to and stretching beyond the IMO2020 sulphur cap,” Panalpina said.

Posted 19 June 2019

© Copyright 2019 Seatrade (UBM (UK) Ltd). Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade.

Marcus Hand

Editor, Seatrade Maritime News

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