BUSINESS

Shipping gearing up for fuel price hike

TAGS: Shipping

The price of ship fuel is expected to rise by 20 to 25 percent from January 1, 2020, as a result of a new regulation by the International Maritime Organization (IMO) mandating the use of fuel with less sulfur content – 0.5 percent from the current 3.5 percent.

Shipping company officials told the Athens-Macedonian News Agency that, in passenger shipping, this could mean a large hike in ticket prices, unless VAT is lowered, to 13 percent or even 6 percent, in order, in the latter case, to cover the full rise in operating costs.

This comes at a time when many passenger shipping firms are considering replacing their aging fleet, especially on longer routes, such as from Athens to Crete or the Adriatic Sea.

The shipping firms are hoping to get EU aid on fleet refurbishment.

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