News / Ocean carriers unlikely to recover the full cost of IMO 2020 compliance

Notwithstanding the significant impact to the bottom line of ocean carriers from the coronavirus outbreak, it is also becoming increasingly apparent that they have failed to pass on all of the extra cost of IMO 2020 cleaner fuel legislation to their customers.

According to Bimco’s chief shipping analyst, Peter Sand, container freight rates have not risen sufficiently to cover the price of compliance.

“The hike this year was not enough, with the market offering little support to carriers attempting to pass these ...