DURING the CrossStaff BCO conference in Antwerp, participants were informed that the alternative fuels under development in the container shipping industry could be as much as five times costlier than current fossil fuels, reports New York's Journal of Commerce.
These elevated expenses will need to be recuperated from cargo owners.
Carriers are now laying out plans for implementing "green surcharges" on cargo owners, potentially as soon as the first quarter of the next year.
This initiative aims to offset the expenses of complying with Europe's emissions trading system (ETS).
It provides a glimpse into the future, where shipping will transition to new fuels far dearer than traditional bunker fuel.
"Rising energy costs and carbon-neutral fuels will become the main driver of freight costs in the long run," said Alphaliner senior consultant Jan Tiedemann.
"Fuel is already a big portion of a ship's operating costs, and the new fuels will be four or five times more expensive than conventional fuels, and on top of that will be CO2 levies."
from: shippingazette