The IMO's decision to implement a global sulfur cap of 0.5 percent for ship fuel in 2020 is now resounding throughout the industry. Maersk Line's alliance partner MSC projects that the directive will cost the carrier USD 2 billion annually, and Maersk Line similarly expects huge additional costs.
"At Maersk Line alone, the additional costs will amount to billions of dollars," writes Aslak Ross, Head of Marine Standards at Maersk Line, in an email to ShippingWatch.
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A VAT dispute in Latvia has now left ferry operator DFDS with millions of kroner in extra costs and a future of navigating a bureacratic minefield. However, the Danish carrier predicts challenges throughout the industry: ”It is only when it’s actually happening, that you realize it is a problem,” warns the company’s indirect tax manager.