On January 1, 2020, the International Maritime Organization (IMO) will impose new emissions standards designed to significantly curb pollution produced by the world’s ships.
Amid a broader push toward cleaner energy markets, the IMO is poised to ban shipping vessels using fuel with a sulfur content higher than 0.5%, compared to the present upper limit level of 3.5%
Effective December 1st 2019 carriers will be implementing these new charges to all quotes under freight terms such as:
It provides a means to significantly improve air quality caused by shipping.
All these measures represent an additional cost. This cost will be taken into account through the application of fuel surcharges on a trade-by-trade basis. Supply and demand varies by region and availability of low sulphur refining in the initial months, there will be market volatility.