Supply Chain Research

Global shipping rates fell by 7.8% in November compared to October, bringing the fourth quarter average so far to a level 21.5% below that seen a year earlier. That presents a challenge for profitability for the container-lines that will be exacerbated by new sulfur-in-fuel rules applied by the International Maritime Organization from Jan. 2020. The spread between low- and high-sulfur bunker fuel reached $290 per ton at the end of November, the highest since at least 2017 and an increase of 61.1% year-to-date. That will disadvantage container-lines using cleaner fuel versus those using d...