Shipping costs in the Mediterranean are expected to rise sharply as new environmental regulations come into effect. The International Maritime Organization’s (IMO) stricter emissions standards, aimed at reducing the carbon footprint of the shipping industry, will compel vessels to adopt cleaner fuels and technologies, leading to increased operational expenses. Industry analysts predict a significant surge in freight rates as shipping companies pass on these costs to customers, impacting trade routes across Europe, North Africa, and the Middle East.
The new regulations, part of the IMO’s efforts to curb greenhouse gas emissions, have placed additional pressure on shipping companies to modernize their fleets. Operators will face higher compliance costs, including investments in alternative fuels like LNG and advanced emission-reduction technologies. This shift is likely to strain smaller operators and could lead to consolidation in the industry, reshaping the competitive landscape in the Mediterranean shipping market.
Jayashree Viswanathan