High fuel costs, overcapacity and contract delays threaten ocean shipping in 2020: report

Increased IMO 2020-compliant fuel costs, overcapacity exacerbated by the novel coronavirus and ongoing trade challenges could drive up costs for ocean shippers in 2020, according to AlixPartners' 2020 Global Container Shipping Report. Shippers should be aware that carriers' ability to survive current market conditions will depend on whether they can successfully pass on price increases, the report found. The uncertain market conditions grant shippers leverage to push for improved price transparency as carriers work to balance their books this year, AlixPartners said. "[Shippers] should expect increases in their fuel adjustment charges or all-in rates," the report reads. "They should also be mindful of the rising risk of carrier bankruptcies.