Rules and Regulations

IMO 2020 Low Sulphur Regulation

Effective from January 1st, the new IMO (International Maritime Organization) 2020 Low Sulphur Regulation will come into force, requiring all sea-going vessels to comply and reduce sulphur emissions by 85%.

In order to sufficiently comply with the Regulation, sulphur in fuel oil must be reduced from 3.50% to 0.50% in addition to the 0.10% sulphur limit already enforced in Emission Control Areas (ECA).

The objective of this regulation is to reduce the amount of sulphur oxide emissions which is expected to deliver major health and environmental benefits, including improvement of air quality and reducing risks of acidification in the oceans.

ANL, as part of the CMA CGM Group will be compliant with a mix of 3 solutions:

• Using liquid natural gas-powered (LNG) vessels

• Using advanced air quality systems onboard our vessels

• And as the main solution, using compliant fuels with 0.50% or 0.10% sulphur

The new IMO 2020 Low Sulphur Regulation will impact the shipping industry globally, with shipping costs set to increase worldwide. As the cost of the Very Low Sulphur Fuel Oil (VLSFO) is expected to be significantly higher than the present High Sulphur Fuel Oil (HSFO).

For short term contracts of validity 3 months or shorter, please be informed that in the month of December only - Low Sulphur Surcharge (LSS) - will be aplied on top of ANL's ocean freight charges effective 1 December 2019.

Please be advised that VLSFO will replace HSFO as the price reference for the quarterly Bunker Adjustment Factor (BAF), effective 1 January 2020. The BAF is applied on top of the ocean freight charges and will still be revised on a quarterly basis with a one-month notice.

For further information, please view CMA CGM's IMO 2020 video or contact your local representative.