Drewry: ECA Compliance Costs Shippers Nothing

first_imgzoom The implementation of the new marine pollution regulation in North Europe and the US since January has so far resulted in zero extra costs for shipping lines and shippers, according to Drewry Maritime Research.Resistance from shippers and the opportune collapse of oil prices have neutralised the cost impact of the low-sulphur fuel surcharge in the container shipping sector, at least for now, Drewry says.But the real cost will be seen once fuel prices start rising again, as Drewry sees inevitably happenning.Before the introduction of the low-sulphur marine fuel regulations in January, shipping lines warned that they would have to increase bunker surcharges, increase freight rates or introduce a new low-sulphur fuel surcharge to offset the extra cost of cleaner fuel.However, very little of this has actually happened since January, according to data gathered by Drewry and by the World Container Index.In principle, if fuel prices had stayed the same, the extra fuel cost on carriers of having to use the more expensive, low-sulphur marine gas oil in the protected Emission Control Areas was estimated at about USD 29/TEU from North Europe to US East Coast, USD 49/TEU from North Europe to US Gulf and USD 21/TEU from North Europe to Asia.From the Mediterranean to the Southern Hemisphere and from Asia to both the Southern Hemisphere and the Mediterranean, there are no Emission Control Areas and therefore no low-sulphur fuel cost impact on carriers.Having tracked this technical issue, Drewry has seen three developments since the beginning of January:From North Europe to the US, about half of shipping lines have actually charged a low-sulphur bunker surcharge (averaging about USD 55/TEU), and the other half included this extra cost in the base rate;From North Europe to Asia, about half of shipping lines have actually charged a low-sulphur bunker surcharge (averaging about USD 20/TEU), and the other half include this extra cost in the base rate;Some shippers have refused to pay any more to cover the low-sulphur fuel costs, on the ground that the cost of standard Intermediate Fuel Oil has decreased during the same period.Given the scale of the decrease in the Bunker Adjustment Factors cost component on the Asia-Europe route, a nominal increase of USD 20/TEU linked to the low-sulphur fuel was immaterial, Drewry says.Furthermore, the underlying bunker price paid by shipping lines to run their ship engines in all areas other than the protected Emission Control Areas has dropped by 44% between July 2014 and December 2014 – an even bigger fall than that of BAF charges.Because there is a lag time between bunker price changes and BAF charge changes, Drewry expects that BAFs will continue to decline in the short term.Source: Drewrylast_img read more

EYEWITNESS Race matters…

…in GovtIn Guyana you seemingly just can’t get away from race; especially in politics. But hold it! Why should that circumstance even be THOUGHT possible?? Our politics was born in race; lives in race; and, the way we’re going, will most likely die in race. And that won’t be a bad thing, will it?? The present politics dying out, that is!But don’t expect that to happen overnight. What with the present players drooling over the mega-bucks that can be pilfered from the oil revenues which will flow from 2020, they’ll use every trick in the book to have their hands on the treasury. And the oldest trick in Guyana — as we just said — is to play the race card.Just look at what’s in the papers over these last two days. We were informed by a former member of the ruling parties that out of the SEVENTEEN Permanent Secretaries in the Government of Guyana, SIXTEEN are African-Guyanese!! Now that’s scary. Permanent Secretaries used to be the backbone of the colonial form of governance that the British had perfected when they ruled the waves — not to mention half of the world’s landmass and population! Each was the top bureaucrat in the Civil Service, and headed an entire department, into which the functions of government were divided – Ministries.Ministers may come and go with each election, but the Permanent Secretaries represented continuity of governance. The Permanent Secretary was supposed to be a professional who’d advise Ministers and execute their directives. His advice was supposed to reflect what was good for the country — not just the party looking to slink back into office. So when you have a situation so ethnically skewed — as described above — in a country where folks vote race straight down the line, and just 4000 votes separate winner from loser, you’ll have a whole lot of disgruntled folks. Not just politicians. This is to be expected, no matter who’s appointed; but with ordinary folks in the group that’s on the “out”, “discrimination” shall be the cry!!Another letter has shown how deeply this “race thing” has embedded itself into our national psyche. McAllister, a member of the PNC who’d disappeared into Reg 11, wrote a missive claiming the lists the PPP has submitted for the GECOM Chair FORCES President Granger to select an “Indian-Guyanese,” and not an African-Guyanese!! Even though each PPP list has more than one African Guyanese!On the other hand, former PNC leader President Hoyte had submitted lists with each having just 1 Indian-Guyanese; but that didn’t FORCE the PPP to select them!!“Race on the brain” will do that to you!!…in JusticeIn Guyana, “sugar worker” is a synonym for “Indian Guyanese”. So when, as in the present, the sugar workers are getting the short end of the stick, it’s not surprising that most of them think they’re being persecuted because of politics. After the Government appointed a CoI to enquire into the state of the Industry — which all conceded was “dire” — they were quite pleased at the recommendations. The Government should invest in the Sugar Industry to bring it to a point of sale — protecting the workers’ rights, of course.But the Government pretty much dumped the CoI report into a canal, and blithely closed Wales Estate — with the prediction that three more estates face the same fate: 10,000 workers to be discarded like a used tissue. But the unkindest cut of all was to refuse the parliamentary reps of those sugar workers a debate on this wretched decision.And now comes the final straw: the Speaker has forbidden the Economic Services Committee to meet those sugar workers and hear their opinions!!Is the Government provoking a rebellion??…or not?Your Eyewitness has heard the complaint that the law courts are becoming “revolving doors”. But the recent situation with Grey Boy and the courts is ridiculous!Could the Government decide whether they want the fella to be railroaded, or what? Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)RelatedEYEWITNESS: The free marketFebruary 18, 2019In “EYEWITNESS”EYEWITNESS: Race and politics…June 16, 2018In “EYEWITNESS”EYEWITNESS: World Affairs…September 22, 2017In “EYEWITNESS” read more