posted on 13 November 2019

2020 Global Sulphur Limits

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:

  1. A short-term solution for most carriers is the usage of low sulphur fuel
  2. Another short-term solution is the usage of scrubbers that filter out sulphur in the exhaust fumes
  3. For a long-term solution most carriers are looking into renewable energy and alternative fuels like LNG

 

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.