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Change in MED services

Change in MED services

Both Ocean Alliance and THE Alliance services from MED to US East are merging into one single service as from early December.

The 2 existing services are deploying 4500 TEU vessels. The new one will deploy 8500 TEU vessels. The total capacity is slightly lower.

However in case of delays or blank sailings, alternative are very limited ; for instance, from FOS, there is no direct sailing alternative (only via Algeciras with Maersk or Valencia with MSC).

Carriers are announcing this is to recover from low freight rates and improve the service reliability as we have all noted less accuracy and more lead times in worldwide shipments.

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France: Difficulties on road

France: Difficulties on road

There are still difficulties to drive and move the containers on time. The spontaneous social movment protesting against the rising fuel costs in France is continuing after its peak day on Saturday. Less roads are blocked but there are still some backlogs and local actions which make the domestic transportation difficult and causing delays.

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2020 Ocean Sulphur Change

2020 Ocean Sulphur Change

Even if ships have always been the most sustainable transport mode for goods and commodities, ships becoming even more energy efficient, they use heavy fuel oil containing sulphur. SOx are known to be harmful to human health. Limiting SOx emissions from ships improves air quality and protects the environment. IMO regulations on energy efficiency support the demand for greener and cleaner shipping. IMO regulations to reduce SOx emissions from ships came into force in 2005. Ocean carriers have upgraded engines, bought lighter bunker and implemented surcharges like LSS or LSF. From 1/1/20, the limit for sulphur in bunker will be reduced to 0.5% (currently at 3.5% with some specific areas already at 0.1%). This will significantly reduce the amount of SOx and should have major health and environmental benefits. A ship which is more energy efficient burns less fuel so emits less air pollution.

A 2016 study to IMO estimated that by not reducing the SOx limit for ships from 2020, the air pollution from ships would contribute to more than half million premature deaths worldwide between 2020-2025.

Let’s be prepare to some increases in the LSS or LSF surcharges in early 2020 and maybe late 2019.

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