Industry Briefing for December 2018
Measures for Recovering Costs Associated with IMO’s Low Sulphur Fuel Content Regulation:
Keeping the new IMO’s regulation of reduced sulphur fuel content in mind, many shipping lines have proactively started calculating the costs associated with the implementation of this change. Although the actual regulation capping the sulphur content in fuel at 0.5% is set to be implemented from 1st of January 2020, shipping lines have already outlined their measures for cost recovery starting from January 2019. This is done in order to streamline and spread out the cost of completely implementing this change by the start of 2020. These charges are for shipping lines to start implementing control measures including investment in new LNG powered ships, installation of scrubbers in already existing vessels to tackle the higher emission and the transition to more environment friendly fuels.
Low Sulphur Surcharge ex Oceania to China:
Provinces in China have implemented a 0.5% maximum sulphur fuel content requirement for all shipping lines operating from their shores. As a result, most shipping lines will impose a Low Sulphur Surcharge, commencing 1st of December 2018, for all exports leaving Australia and New Zealand to the ports of Shanghai and Ningbo. These rates will be as follows:
USD 10 per 20’
USD 20 per 40’