On January 01st, 2020 the International Maritime Organisation (IMO) will enforce a new emissions standard from the present 3.5% to 0.5% sulphur cap. This step is to reduce the pollution footprint of shipping globally, however carriers and related parties are acting now to meet the IMO requirements.
How will IMO 2020 affect exporters / importers?
- Higher shipping rates and increased prices for consumers.
- Reduced service options during transition period.
- The increase in the shipping line / vessel owners fuel / bunker will drastically increase costs, unfortunately this will simply be a knock on effect to all importers and exporters.
How are the carrier and ship owners preparing?
- Purchase cleaner fuel: however more expensive by approximately 50%.
- Install scrubbers: however adds significant cost to the vessel transfer or construction.
- LNG powered vessels.
For more information please contact Noble Freight Services.