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IMO 2020 Cost Impact Calculator

The clock is ticking on the IMO 2020 low-sulphur, bunker deadline and yet much work remains to be done. Our new Cost Impact Calculator - helps bring clarity to shippers/BCOs who are uncertain of the full commercial impact of the regulatory change on their ocean freight costs and procurement decisions.

Need help preparing the fuel clause in your 2019 contract?

As we begin the countdown to the 2020 regulatory deadline, we identify some of the issues worth closer scrutiny and offers tips to help you improve fuel clauses in 2019 contracts. For assistance with designing your own fuel charge programme contact us at verifiedfuelcharge@drewry.co.uk

Drewry's IMO 2020 Survey exposes uncertainty and unease among BCOs

A Drewry survey of global shippers and freight forwarders completed in Sept 2018 found that three quarters of respondents had yet to receive information from their carriers on how they planned to recover the fuel cost increases widely anticipated to accompany the regulatory change. More worryingly, over half of respondents did not consider their service providers’ existing approaches as either fair or transparent.

 

Call for greater transparency

The need for clear understanding and transparency cut to the very heart of the matter. In responding to the concerns of shippers, we have developed a new range of fuel cost verification services alongside our freight procurement and cost benchmarking products to help medium and larger BCOs better understand their fuel cost exposure and mitigate future cost increases.

 

Verify your future fuel costs

In cooperation with both shipper members of the Drewry Benchmarking Club, and other parties, we have now developed an IMO low-sulphur rule "Cost Impact Calculator" based on robust market data and benchmarked BAF charges, looking at fuel cost differentials between loops and between carriers.

 

Drewry is currently working with other shipper groups to obtain more information on current versus the likely post-IMO fuel consumption mix. Detailed fuel data and BAF policy information has already been sourced from several carriers to incorporate in these new models.

To discuss participation in Drewry’s IMO fuel cost initiative, contact us:

 

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Recent News

Satisfaction survey in container transport: Shippers dissatisfied with clarity of surcharges and transit times

The level of satisfaction concerning container carriers among exporters, importers, and freight forwarders falls marginally, according to the third annual shipper satisfaction survey of Drewry and the European Shippers’ Council (ESC).

Drewry adds benchmarks on contract BAFs to its Benchmarking Club service

Ahead of the IMO 2020 low sulphur regulatory change, Drewry has begun providing members of its Benchmarking Club service with quarterly benchmarks on contract Bunker Adjustment Factors (BAFs).

Recent Projects

Market entry strategy for digital 'procure-to-pay' solution

The client wanted to evaluate the readiness of the container freight industry to adopt a value proposition for procure-to-pay automation that incorporates core Mastercard benefits such as payment guarantees.

e-sourcing global ocean tender management solution: e-SOFS

Drewry Supply Chain Advisors was selected to manage the 2016 global ocean tender for a US-headquartered global producer of technology products combining procurement best practices, the latest technology and freight cost benchmarks in Drewry’s e-Sourcing Ocean Freight Solution (eSOFS).
The first company to provide detailed and regular slow-steaming analysis for the container industry (Container Forecaster)
The first independent consultancy to publish liner schedule reliability rankings in 2005
Access to an exclusive ocean freight cost benchmarking club comparing costs on over 2 million teu of freight for more than $2.3bn of freight spend.
We were the first to publish benchmark container spot market freight rates in 2006.