Economics
Coming Soon to an Ocean Near You: Ships Moving a Tiny Bit Slower
- Shipping regulations to prompt vessel slow-steaming by 2020
- Move may temporarily tighten fleet capacity, boost cargo rates
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If you happen to be at the beach this summer, make a mental note of any giant freighters crossing the horizon. In a few years’ time those same ships will probably be moving just a fraction slower.
If the slowdown does happen -- and the likes of Citigroup Inc. say it will -- then the wider consequences would be profound for both the shipping industry and its customers, given that about 90 percent of world trade moves by sea. The cause of this deceleration? A rule to combat the merchant fleet’s emissions of sulfur oxides starting in January 2020.