News
The U.S. Federal Maritime Commission (FMC) will keep paying attention on how ocean carriers pass on additional fuels costs arising from International Maritime Organization's (IMO) low-sulphur requirements. The IMO rule requires ocean carriers, beginning in January 2020, to burn low sulfur fuel that has a 0.5 percent sulfur content or install exhaust scrubbers in order to continue to run their vessels with heavy bunker fuel that contains 3.5 percent sulfur content. For ocean shipping lines, it could boost ship fuel costs by as much as one third, and estimates run between $10 to $15 billion dollars a year in additional costs for their industry.
''The Commission is monitoring this issue because of our interest in an efficient marketplace and to ensure that carrier efforts to recover costs associated with the new standards do not violate the Shipping Act. A primary concern to the Commission under the Shipping Act is whether ocean carrier bunker charge adjustment formulas are clear and definite,'' FMC Chairman Michael Khouri told before members of the Senate Committee on Commerce, Science, And Transportation Subcommittee on Security.
