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EMO Trans Bulletin 2019-19
IMO 2020 Aims to Slash Sulfur Emissions
December 9, 2019

Dear Valued Customer,
 
The International Maritime Organization (IMO) has issued a ruling effective January 1, 2020 that marine sector emissions allowed in international waters will be slashed. The marine sector will have to reduce sulfur emissions by more than 80% by switching to lower sulfur fuels, fuel scrubbers or liquefied natural gas (LNG). The current maximum fuel oil sulfur limit is 3.5%; IMO 2020 requires this be reduced to 0.5%. In order to meet these new requirements, carriers will need to make significant investments on fuel scrubbers or pay higher bunkering costs for low sulfur fuel. The estimates for the additional cost to the industry to meet the requirements is $24 billion for 2020. These costs will be passed on to the end consumer.

The steamship lines' charges for passing on these IMO 2020 costs will be unique to each carrier. These charges will also be different for each trade lane based on trade factors and can be different for the same trade depending upon direction.

IMO 2020 regulations will see the largest reduction in sulfur content ever undertaken in the transportation industry. These lower emissions are expected to improve the ocean environment's sustainability and health both now and for future generations.

Please reach out to your EMO Trans representative if you have any questions about IMO 2020 or the expected impact on the trade lanes specific to your supply chain. Thank you for choosing EMO Trans to handle your shipping needs.
 
Best regards,

Kennon Carter
Corporate Ocean Procurement Manager

EMO Trans, Inc.
Copyright © 2019 EMO Trans, All rights reserved.
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