New green shipping regulations take effect in 2020; cargo ships respond in three phases.
In April 2018, member states of the International Maritime Organization (IMO) adopted a historic agreement to halve CO2 emissions from the shipping industry by 2050. Industry discussions surrounding the upcoming implementation of low-sulfur fuel oil in 2020 have led to a 50% increase in fuel procurement costs. The industry is employing a comprehensive strategy, employing three main approaches, which will significantly impact shipping price trends in the long term. Taiwanese companies Evergreen and Yang Ming Marine Transport have adopted a more conservative outlook for this year, but believe next year's market conditions will be better. The shipping market is facing increasing challenges and entering a volatile era. According to Alphaliner, a shipping consultancy, the annual growth rate of global cargo volume has been lowered this year. Evergreen and Yang Ming both believe this year will be very challenging for container ships, with new ship supply at an annual rate of 5.8%, while cargo volume growth has decreased from the original forecast of 5.3% to 4.5%. This is the reason for the industry's relatively conservative outlook this year. However, the industry's implementation of contingency strategies during the peak season will contribute to the healthy development of the container market. This year also sees the impact of rising oil prices, with the price of marine fuel oil per ton soaring from $300 last year to $370, an average increase of 25%, which will also affect shipping companies' operating costs. Faced with rising oil prices, the world's three largest container shipping companies have announced the implementation of emergency fuel surcharges, creating a climate of rising freight rates this year and gradually reducing the pressure from rising oil prices. In the long term, the International Maritime Organization (IMO) has begun addressing threats to the marine environment. With regulations to reduce sulfur oxide emissions implemented since 2020, provisions have been made...