LSS (Low Sulphur Surcharge) / IMO 2020
Find out about the latest updates from Burnard International
Post by: Burnard Intl.
As advised earlier this year, the International Maritime Organisation ( IMO) are introducing new regulations effective 01st January 2020.
Effectively they will put a cap on Sulphur emissions for the marine sector in International waters. In summary, the current limit will need to be reduced by 80% by switching to lower sulphur fuels or by installing scrubbers. The current maximum limit for bunker fuel oil Sulphur will need to reduce from 3.5% weight (%), down to 0.5% weight.
The Global Shipping & Marine sector consumes approx.. 3.8 million barrels per day, circa half of the global fuel demand. The cost of the new required fuel type is significant, and liners will naturally be looking to recoup the additional costs from cargo owners. The implementation has already commenced, but we expect this to start to increase further in Q4 2019.
The structure of the increase will vary from liner to liner, we will try to simplify these new charges by way of an itemised surcharge per container or cubic meter etc.
More details will follow as these come to hand.