International Maritime Organization (IMO) rules intended to reduce emissions to the air from ships have been found likely to increase in annual seagoing ship operating costs industry-wide by up to $60 billion, major shipper Maersk and Bloomberg Markets said.
The 70 percent of ship owners and fuel suppliers potentially failing to comply with the 2020 deadline, which was only approved in October, may see financial strains increase and shipments grow “chaotic” as they struggle to find ships that meet the grade, the reports concluded.
Finance for retrofits is not available for all shippers.
While most ships will switch to mixed fuels, Maersk in a statement called the technological options for compliance “immature” and estimates fuel costs will increase by billions of dollars each year.
Development for such technologies has been a concerted effort by government and industry.
A new center funded by the European Union (EU) and run by IMO at the University of Trinidad and Tobago hopes to speed the transition into a low-carbon future, the IMO said in response to the criticism.