IMO 2020

IMO 2020 refers to regulations implemented by the IMO on sulphur content, which were introduced in 2020. As per January 1st 2020, the fuel on which ships operate is restricted to a maximum sulphur content of 0,5%. Previously the limit was 3.5%. In so-called Emission Control Areas (ECA) the regulations are even stricter, as they limit the sulphur content to 0.1%. These environmental areas currently cover Northern Europe, the Baltic Sea area, USA, Canada and parts of Asia. Vessel operators have 3 options to have their vessels comply with these regulations:

1: Placing scrubbers on ships.

2: Switch to very low sulphur fuel oil (VLSFO - Very Low Sulphur Fuel Oil)

3: Switch to alternative fuels such as LPG or LNG

All these changes create extra expenses for carriers, which will be will be charged on to the freight paying party. The amount of the surcharge, as well as the name, varies per carrier and per area.