From January 1st 2020 a global regulation will come into force changing the type of fuel all shipping lines must use.
The aim of the regulation is to reduce air pollution from ships.
Today’s ships can use fuel with up to 3.5% sulphur content, the new global sulphur cap will be 0.5%.
All shipping lines will be purchasing the lower sulphur fuel come the 1st December 2019 in order to be compliant for the new year. Currently the cost of this fuel is higher than the present fuel that it utilised by all shipping lines.
The additional cost for the low sulphur fuel will differ across each shipping line and will change monthly. These costs will reflect on your invoice as LOW SULPHUR FUEL RECOVERY.
There are thousands of container ships moving around our oceans at any given time. This initiative will reduce sulphur oxide emissions of shipping which will, in turn, help improve the environment.
Fremantle Ports have issued an informative document summarising IMO 2020 – click Fremantle Ports IMO2020.
Source credit – WAPOTF, Hamburg SUD and Fremantle Ports.