The regulations surrounding the IMO 2020 sulphur cap are here to stay..
Several shipping lines like Maersk, MSC, CMA-CGM, ONE, OOCL and APL had announced in late 2018 that these costs for compliance will have to be passed on to customers/trade through the implementation of new or adjustment to existing fuel surcharges, which may vary based on the trade lanes..
These new bunker surcharges are set to kick in as of this week..
In April 2018, more than 100 Member States met at the International Maritime Organisation in London and adopted an initial strategy on the reduction of greenhouse gas emissions from ships by at least 50% by 2050 compared to 2008 levels..
The current global limit for sulphur content of ships’ fuel oil is 3.50% m/m (mass by mass)..
The regulations to reduce sulphur oxide emissions has introduced a new global limit for sulphur content of ships and as from 1st of January 2020 the new global limit on the sulphur content will be 0.50% m/m..
The LSS or Low Sulphur Surcharge is as a consequence of this meeting..
In one of our previous articles about IMO 2020 Sulphur Cap, we reported that many shipping lines will be adopting the regulations but also implementing a bunker surcharge to cover the same..
MSC is one of the lines that have announced the introduction of new bunker charges as of 1 January 2019 to achieve the common goal of improving environmental performance in the container shipping supply chain, as required by the IMO 2020 Sulphur cap..
MSC has revealed the mechanisms for the calculation of their 2020 sulphur cap bunker surcharge..