Global Sulphur Limit IMO 2020 to 0.50% & Three Major Ocean Carriers Announce Application or Adjustment of Fuel Surcharges
As Per announced by The International Maritime Organization (IMO),the set of The new lower 0.50% limit on sulphur in ships’ fuel oil will be in force from 1 January 2020, under IMO’s MARPOL treaty, with benefits for the environment and human health. This will reduce the amount of sulphur oxide emissions from Ocean ships and should have major health and environmental benefits.
With this regulation on place the Three major ocean carriers, Maersk, CMA CGM, and MSC have announced new fuel surcharges as of January 1, 2019 in order to recover the fuel related costs.
As stated in Maersk’s press release, “Based on expected differences in price between current 3.5% bunker fuel and complaint 0.5% fuel, external sources estimate the additional cost for the global container shipping industry to comply could be up to USD 15 billion.“
MSC has also said: “MSC Mediterranean Shipping Company S.A.’s operating costs are expected to increase significantly as we continue to prepare for the 2020 low-Sulphur fuel regime. We are therefore introducing a new Global Fuel Surcharge as of 1 January 2019 in order to help customers plan for the impact of the post-2020 fuel regime.”
And CMA-CGM stated: “ In order to ensure the sustainability & reliability of our services in this challenging environment, CMA CGM will introduce a new quarterly Bunker Adjustment Formula (BAF) for long term contracts starting from 1st of January 2019.”
For more information click below links to view:
- Maersk to change fuel adjustment surcharge ahead of the 2020 sulphur cap
- CMA CGM – New BAF on Asia-North Europe & Mediterranean trades
- MSC – 2020 Sulphur Cap