Shippers: We want more mature IMO 2020 pricing

“Whether that will be the case will be the subject of individual negotiations over the coming months,” Hookham said.

However, he added, shippers should be demanding clear and consistent explanations of any surcharges demanded. “GSF’s ‘Top Ten Tips for Sulphur-Surcharged Shippers’ reminds our members of the ground rules and to scrutinize carefully any surcharge demands made during contract negotiations,” he said.

GSF’s “Top Ten Tips for Sulphur-Surcharged Shippers” highlights the fundamentals of the new rules that all vessels are now required to meet in all parts of the world. But it also encourages shippers to challenge the basis of any surcharges to make sure they understand exactly what they are being asked to pay extra for — and whether it can be properly explained and justified by carriers.

“Ultimately, the industry needs to move on to a more mature pricing regime with confidential contracting and all-inclusive charges becoming the ‘new normal,’” said Hookham.

“The shipping industry needs to wean itself off surcharges, just as much as it does high-sulfur fuels.”

According to Hookham, in 2020 the environmental performance of the shipping industry will come under intense scrutiny in the world’s regulatory forums.

“The IMO low-sulfur fuel regulation will be followed by crucial meetings on reducing greenhouse gas emissions and shipping’s carbon footprint,” he added.

“The industry needs to demonstrate a responsible attitude to meeting the costs of its environmental responsibilities to retain the confidence of customers and regulators.”