IMO2020 ensures reduction of sulphur emissions


IMO puts new regulation into force on 01 January 2020.

Over the last decade, the International Maritime Organization (IMO) has implemented several environmental measures to be followed by the shipping industry. The organization aims to significantly reduce shipping emissions and their impact on the pollution of the world's oceans and coastal regions. The IMO2020, valid from 01 January 2020, is the first regulation in the series of these measures.

Which measures does the IMO2020 specify?
The IMO2020 identifies three measures, for all involved in the sector, to significantly reduce sulphur emissions and comply with the regulation.

  • The ships will operate on fuels with a maximum sulphur content of 0.5%. In some emission control areas in Europe and North America, stricter sulphur regulations of 0.1% apply. Currently, fuels with a sulphur limit of 3.5% are still the standard.
  • Exhaust gas cleaning systems (EGCS) should be installed in the ships to significantly reduce sulphur emissions. That would continue to allow heavy fuel oil to be used.
  • Ships should be converted to use liquefied natural gas (LNG) as fuel, which will reduce sulphur consumption and CO2 emissions.

The majority of the shipping industry is expected to opt for low-sulphur fuel from January onwards, as this is the fastest and most environmentally friendly solution to implement. However, market participants must expect additional costs for all three options.

What does this mean for EgeTrans customers?
IMO2020 will significantly improve the industry's ecological footprint and make the industry more sustainable. However, the use of lower-emission fuel will lead to additional costs for shipping companies, which they will pass on to their customers in the form of various surcharges. After analyzing the market situation, we found that the shipping companies do not operate on a consistent line, the type and amount of additional costs per shipping company differ significantly.

Ultimately, we are also being forced to pass on these additional costs to you by generally increasing our BAF/Low Sulphur Surcharge. We remain in close contact with the shipping companies in order to be informed about current and future developments and to be able to support you with new information at any time.

Do you have any questions about IMO2020 or our BAF/Low Sulphur Surcharge? Our Sales Consultants will be happy to provide any support needed.