On 1st January 2020, the International Maritime Organisation (IMO) will implement a new regulation for a 0.50% global sulphur cap for marine fuels. Under the new global cap, ships will have to use marine fuels with a sulphur content of no more than 0.50% against the current limit of 3.50% in an effort to reduce the amount of sulphur oxide.
In accordance with the new regulations, Shipping Lines are implementing technical measures to meet the new regulations. Vessels are taken out of service for upgrades, and Shipping Lines are already forced to use cleaner fuel, which means cost increases. The cost increases will be introduced successfully in the Ocean Shipping Market, on some export trades from November 1st. On Far East imports, this occurs as early as December 1st.
With regards to the new IMO charge implementation, there is no harmonization between Shipping Lines. This means that there will be various levels from shipping lines, per market but also differences if a transport concerns import or export.
As for now, the increase levels are still unknown. All increases will be charged according to outlay from Shipping Lines.
For additional information, contact your local Hecksher Office.
