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Sulfur regulations may trigger new crashes and acquisitions in the container industry

The coming 2020 requirements may break container carriers and trigger a new wave of acquisitions or mergers, according to maritime and supply chain consultancy firm Drewry.

Photo: Patrick T. Fallon/Bloomberg

In nine months, new global sulfur regulations take effect, which may shake the foundations of financially weak container carriers and lead to a new wave of consolidations in the industry, estimates maritime and supply chain consultancy firm Drewry.

"Without wanting to be too alarmist, there is the potential for IMO 2020 to inspire another major carrier bankruptcy and/or trigger more defensive M&A (mergers and acquisitions, -ed.). It could turn out that the IMO will inadvertently push industry consolidation along, closer to where it needs to be in order to achieve sustainable profitability," writes Drewry.

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