Low Sulphur IMO 2020 regulation

The new International Maritime Organization (IMO) Low Sulphur Regulation is effective since 1 January 2020 and requires all shipping companies to reduce their Sulphur emissions by 85%.

What do you need to know about IMO 2020?

This new regulation aims to reduce the environmental impact of the industry and significantly improve air quality, an initiative in which the CMA CGM Group has been involved for more than 15 years.

Since January 1st, 2020 CMA CGM is fully compliant and has decided to go even further:

to favor the use of Very Low Sulphur Fuel Oil (with 0.5% Sulphur) for its fleet,
and to invest significantly:
by using Liquefied Natural Gas to power some of its future container ships (26 ships by 2022, including 9 vessels of 23,000-TEUs), notably resulting in a 99% reduction in sulphur oxides and 91% for fine particles emissions,
by ordering several scrubbers for its ships.

What does it mean for our customers?

All these measures represent a major additional cost. This cost is taken into account through the application of fuel surcharges on a trade-by-trade basis.

For short-term contracts (up to 3 months validity): Low Sulphur Surcharge – IMO 2020 (LSS) as of December 1st, 2019.
For long-term contracts (more than 3 months validity): BAF Formula based on VLSFO 0.5% as of January 1st, 2020.

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