September 13, 2019
IMO regulates sulphur content in fuel oil to less than 0.5% from January 2020.
PERTH WA, 10 September 2019: Today MYC Logistics shares news of maritime fuel changes which will have a positive impact on the environment. The shipping industry is striving to be at the forefront of innovation and technology, but this type of transport is still one of the highest CO2 emissions contributors.
The United Nations created the International Maritime Organization (IMO) to regulate maritime pollution, while maintaining safety and security within the industry. To complement this agency, The International Convention for the Prevention of Pollution from ships (MARPOL) offers a worldwide collaboration to protect the marine environment. On a global scale, the current limit for sulphur content in fuel oil is 3.5%. With the new changes being implemented by the IMO from 1st January 2020, this limit will drop to less than 0.5%.
The reduction is caused by a conscious effort to lower the amount of sulphur oxide emissions. The projected outcomes of this implementation should have a positive impact on both the environment, and the health of the population. Despite the benefits, there will be an adjustment period as the news may require immediate action from carriers in order to meet the amended regulations.
MYC Logistics suggest there are different options for companies in this position looking to change their current practices. Switching to 0.5% compliant fuel is one strategy, or sulphur can be cleaned to reduce emissions. For those looking to invest in new technologies, alternative fuel oils are available.
There is predicted to be a price tag of USD 60 billion dollars to the industry in order to support this move. To compensate for this increase, carriers are already advising of rate increases from the 15th September 2019. Included in this, a Rate Restoration programme will be implemented for all sailings from Bangladesh, Cambodia, China, Hong Kong, Indonesia, Korea, Malaysia, Myanmar, Philippines, Singapore, Taiwan, Thailand and Vietnam to Australia and New Zealand. This will be USD 300 per TEU to Australia.