IMO Sulphur 2020
On 1 January 2020, the International Maritime Organization (IMO), as the United Nations' arm on performance in the global shipping industry, has set a new fuel regulation. This regulation is global and every shipping line needs reduce the current allowed fuel sulphur limit of 3.50%S to 0.50%S.
Carriers have only 3 main and viable options;
1) Buy IMO2020 compliant fuels replacing high sulphur fuel oil (HSFO)
2) Install exhaust gas cleaning system, also called scrubbers
3) Switching propulsion systems to other fuels such as liquified natural gas (LNG)
Please note that this cost will be passed on to the end-users resulting in a global increase in the total freight, whatever the chosen option.
The impact should be felt from the end of 2019 onwards, with an increase of approximatelly 10 to 20% depending on route and ships used.
If you have any questions, please do not hesitate to contact us at www.vandongederoo.com – Miles ahead in shipping