The new IMO Low Sulphur Regulation, effective from 1 January 2020, will require all shipping companies to reduce their sulphur emissions by 85%.

In order to comply, CMA CGM has decided to favor the use of 0.5% fuel oil for its fleet, and to invest significantly:

  • By using LNG to power some of its future container ships (9 ships on order), resulting in a 99% reduction in sulphur emissions;
  • By ordering several scrubbers for its ships.

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These measures represent a major additional cost estimated at an average of 160 USD / TEU. This additional cost will be taken into account through the application or adjustment of fuel surcharges on a trade-by-trade basis.

Mathieu Friedberg, Senior Vice President Commercial Agencies Network, noted:

We will inevitably have to review our sales policy regarding fuel surcharges.

Another shipping giant, Maersk, informed that it will change the fuel adjustment surcharge ahead of the 2020 sulphur cap.

The new Bunker Adjustment Factor (BAF) aims at recovering the Maersk Line costs of compliance with the global sulphur cap which enters into force on 1 January 2020.

To allow customers to familiarise with the changed formula, Maersk Line’s BAF surcharge will be introduced on 1 January 2019.