Are you aware of the new International Maritime Organisation (IMO) sulphur regulations? As of 1 January 2020, there will be a 0.50% global sulphur cap on maritime fuel emissions. This, in contrast to the current limit of 3.50%, is a big step towards a more environmentally friendly and future-thinking transportation industry.
How will the shipping industry accommodate this new regulation?
There are three ways vessels can adapt:
What does this mean for you, the cargo holder?
While it is difficult to say what the impact will be on a local long-term level, on the short-term freight prices will rise as the low-sulphur and alternative fuels are more expensive.
The official date of the regulation of these limits is set 1 January of 2020 but most of the ocean carriers are implementing the surcharge from 1 December 2019.
Read more about the 2020 Global Sulphur Limit here. We at Orange Shipping and Logistics will continue to provide information and transparency as this new regulation takes effect.