January 2020 price increases.

intrade, Jul 15, 9:37pm
kazbanz, Jul 15, 9:54pm
Well I got the month wrong but it looks like Im right about pricing
kazbanz, Sep 24, 8:06pm
A fairly safe prediction this one folks.
The price of every single imported item will go up as of January 2020
AND our export markets will suffer as we either have to suck up additional costs or loose market share.
This increase is because theres going to be a hike in shipping costs
On January 01st 2020 a regulation developed by the International Marine Organisation (IMO) to limit the sulphur content in marine fuels (IMO2020) will come into effect.
The new regulation will cap the sulphur content in marine fuels to 0.5 % m/m (mass by mass), lowering from the present 3.5 % m/m in IFO 380 Bunker Fuel that the ships are currently using.
Basically there are 2 options the shipping lines can use to comply to the new regulations.
One option is to use the compliant fuel which has a sulphur content of 0.5 % m/m.
The second option is to fit the ships with special “scrubbers” which clean the exhaust smoke from the engines and reduce the sulphur content and will allow them to continue to use the current IFO 380 Bunker Fuel.
Both options will mean an increase in the cost of shipping not only for the automotive industry but across all industries that rely on shipping globally.
We expect we will start seeing increases in the shipping costs from November/December onwards.
poppy62, Sep 24, 11:32pm
It's a beautiful Planet we inhabit. but a bloody terrible world we live in. The money people call the shots and we all grab a bigger straw in order to suck up the "Taxes". The fact the U.N. wants to be in charge of all finances (collected) relating to "Climate FARCE Change" says how the Populace is being shafted. Worst of all is the Easily Led among us are the loudest protagonists in this absolute debacle to Rob the poor to pay the Oligarchs even more.
serf407, Sep 25, 1:04am
Even the Dunedin used 3 tons of coal a day to ship the sheep
Dunedin - ship
https://en.wikipedia.org/wiki/Dunedin_(ship) Have to get Team NZ or Rocket labs - to do a few altruistic type projects - i.e to lower shipping pollution with rotor sails - see if TNZ can design a better one, generate more lift for the ship at a reduced velocity etc) Norsepower rotor sails https://youtu.be/EZoE_BKizxI?t=44

And Maersk Pelican tanker
https://youtu.be/7fjS-l-LVoA Even the US navy is going back to foiling. https://www.thedrive.com/the-war-zone/27350/the-u-s-navy-has-unveiled-a-new-hydrofoil-its-first-in-decades
poppy62, Sep 25, 1:19am
Could use Submarines! Or Ships with Oars, would be a outlet for all the Dole people to vent their pent up energy on.
elect70, Sep 25, 1:26am
Probably cheaper for them to usethe low suphur fuel & better for the engines . It had to come so costs will have to be passed on , probably for large items like car imports but small stuff very little
stevo2, Sep 25, 3:38am
I dont quite understand.
Why would you think that everything NZ IMPORTS will go up in price because of this yet we have to suck up the extra costs of everything NZ EXPORTS?
At the end of the day, buyer pays both ways.
drsr, Sep 25, 4:14am
Mainfreight reckon the effect will be USD50 – USD300 per 20ft container, so not a huge amount per car really (1-2 cars per container). https://www.mainfreight.com/global/en/news/transition-to-2020-low-sulphur-fuel-surcharge-lss.aspx
kazbanz, Sep 25, 4:17am
Stevo--it is my prediction of what is going to happen.
being a pimple on the worlds backside we don't have the clout to force other markets to absorb the costs whereas overseas markets have choices/options other than to buy from us.
The great news with stuff like this is time will either prove me right or wrong.
mojo49, Sep 25, 4:21am
Had this discussion before kaz. Just because import costs rise does not mean retails rise. In your game given the vast number of cars on lots what is more likely is that number of dealers will reduce to make the reduced margins viable for the reduced numbers of retailers. In other areas where there is more upward price flexibility such as fuel addition costs of freighting imported fuel and crude will be added to rhe retail.
solarboy, Sep 25, 11:39am
Someone's bound to blame the government for this .
desmodave, Sep 25, 5:09pm
Not right now though as they busy white baiting for some weeks yet . They will have that new car before the end of the year though .
kazbanz, Dec 24, 10:09am
That's the great thing about predictions--time will tell. who is right and who is wrong. I'm sticking with my prediction of price increases. basically theres only so far down prices can go before you are selling rubbish.