Better to export the goods before Dec. 2019 for new round of price-rising in Sea freight and land freight in China

1. IMO 2020 Low Sulphur Regulation is going to push Sea freight rise by 20%

Recently, Rech Chemical Co., LTD., constantly informed by our ferrous sulfate monohydrate forwarder company that From January 1st, 2020, the new IMO (International Maritime Organization) 2020 Low Sulphur Regulation will be in effect. All sea-going vessels worldwide will have to comply and reduce their sulphur emissions by 85%.To comply with the Regulation, sulphur in fuel oil must be reduced from 3.50% to 0.50%. Thus, 0.5% low sulfur fuel will completely replace the traditional high sulfur fuel. This new regulation has a significant impact on shipping companies, freight forwarders, and shippers! 

According to the Marine fuel price statistics of the world's major ports, low sulfur fuel cost more  $200 than sulfur fuel per ton averagely. For ocean-going ships, its daily oil consumpt would be less as dozens of tons or more as hundreds of tons. Fuel costs increase substantially.  From 2020, all sea-going vessels should use low sulfur oil  all round, which is expected to increase the sea freight by about 20%. At present, Pan Asia Shipping, CMA Shipping and other domestic and foreign shipping companies have issued to increase the fuel surcharges. And more shipping companies will  issue price increases notice lately.

2. Overloading and crushing of overhead trucks in Wuxi leads to more severe treatment and overtreatment limits

On Oct.10, more than half of China is carrying out a campaign to control overloading because of the truck overloading and crushing accident in Wuxi, capital of east China's Jiangsu province. Provincial, prefecture-level transportation bureaus and port administration units, road and bridge management units, logistics enterprises take alert eyes and pressure on the prevention and control of truck overloading. In container trailer transportation, double container carrier is controlled to be single container, which takes the cost raised solidly. Clearly, land freight in China is bound to rise.

The situations of shipping companies collecting goods have always been in blowing up mode since Oct. As Low Sulphur Regulation Day on 2020 New Year approaching and less than three months left, the blasting case in warehouse model is expected to be continued until the end of the year. So, at present, Rech Chemical Co .Ltd colleagues who in charge of the firmed orders are busy to push to load the containers before 2020 New Year's day as quickly as possible and safely.  After that, Rech Chemical Co. Ltd would made a corresponding increase in the ferrous sulfate price quotation, please all the new and old ferrous sulfate monohydrate customers informed about this news.

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