- IMO requires that from January 1, 2020, sulphur content in the fuel used for international shipping must be limited globally to 0.5 per cent
Dar es Salaam. The Mediterranean Shipping Company (MSC) is expected to introduce the global fuel surcharge.
That comes after the United Nations International Maritime Organisation (IMO) announced a new standard of sulphur content in the fuel used for international shipping.
IMO requires that from January 1, 2020, sulphur content in the fuel used for international shipping must be limited globally to 0.5 per cent, compared with the current standard of 3.5 per cent to minimise emissions of sulphur oxides from ships. MSC has noted in a statement that its operating costs are expected to increase significantly as “we continue to prepare for the 2020 low-sulphur fuel regime.
We are therefore introducing a new global fuel surcharge as of 1 January 2019 in order to help customers plan for the impact of the post-2020 fuel regime.” The new MSC Global Fuel Surcharge will replace existing bunker surcharge mechanisms and will reflect a combination of fuel prices at bunkering ports around the world and specific line costs such as transit times, fuel efficiency and other trade-related factors.
“The cost of the various changes we are making to our fleet and its fuel supply is in excess of two billions of dollars per year,” MSC has said. MSC operates a modern, green fleet and seeks to operate in a sustainable and responsible way, guided by social and environmental values in its business plans and practices.
“The company is committed to contributing to global efforts to reduce ship emissions and fully supports the UN IMO’s work in this area,” the statement added.
A plan to optimise energy efficiency through continuous evaluation of trade route networks is also expected to help limit fuel use and improve service reliability.