New Global Clean Air Rules to Disrupt Shipping and Trucking Companies

June 27, 2019  by Laurie Northington in Business Strategy, Industry   

The tougher regulations from IMO, the United Nations shipping agency, state ship owners must cut sulphur emissions to 0.5 per cent from 3.5 per cent. They can do this by using low-sulphur fuel, installing exhaust gas cleaning systems or opting for other, more expensive, clean fuels such as liquefied natural gas or traveling more slowly.

Costs are expected to rise for ships towards the end of this year and there will be a knock on effect for trucks and other transporters that move goods around the world. Analysts say the container industry, which transports consumer goods such as sofas, designer clothes and bananas, will be one of the worst hit with extra costs of about $10 billion.

In a letter sent to top U.S. government officials, including National Security Advisor John Bolton, transport associations including trucking groups said there was consensus that U.S. transport industries would be “negatively affected by IMO 2020 pricing pressure”. It said there could be market disruptions.

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