2020 Low Sulphur Regulation

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We have good news and bad news for you.

The good news is that the international community has agreed to work together on reducing pollution in the oceans.

From 1 January 2020, the new IMO (International Maritime Organization) 2020 Low Sulphur Regulation will be in effect – all sea-going vessels worldwide will have to comply and reduce their sulphur emissions by 85%.

To comply with the Regulation, sulphur in fuel oil must be reduced from 3.50% to 0.50%, in addition to the 0.10% sulphur limit already effective in the Emission Control Areas (ECA). This aims to reduce the amount of sulphur oxide emissions and should have major health and environmental benefits globally, including improving air quality and reducing risks of acidification of the oceans.

The bad news is that the clean fuel costs much more, and will be recovered by additional fuel surcharges added to the ocean freight. Different steamship lines are calculating it in different ways, and charge it based on the distance. Please expect price increases on December 1st in the range of $100- $400/ 40’HC.

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Please reach out to your project lead with any questions or rates you may need. If you do not have a project lead, please feel free to email denisec@mxshipping.com.