From 1st January 2020, a new regulation will come into force, implemented by the IMO (International Maritime Organisation) to reduce air pollution from ships globally.
The new global sulphur cap will be 0.5%, a staggeringly low amount when compared to the current cap of 3.5%. This new regulation will have the implication, of shipping costs increasing, as shipping lines will have to face a high cost of compliance by either making use of the new fuel, which is more expensive than the current fuel containing higher sulphur amounts, or by installing retrofitted scrubbers in their vessels, again incurring a cost.
This will doubtless have to be forwarded to the market, by means of additional or increased bunker surcharges, or alternatively higher freight rates.
A small price to pay for a cleaner, greener future as we believe.