CMA CGM to adopt low sulfur fuel surcharge

Starting 1 January 2020, the new IMO (International Maritime Organization) 2020 Regulation will enter into force. As a result, all ships worldwide will have to meet and reduce their sulfur emissions by 85%.

To comply with the regulations, sulfur in fuel oil must be reduced from 3.50% to 0.50%, in addition to the 0.10% sulfur limit already in place in the Emission Control Areas (ECA). The goal is to reduce the amount of sulfur oxide emissions, which should bring major health and environmental benefits worldwide, including improving air quality and reducing the risks of ocean acidification.

Being aware of this, CMA CGM issued a statement on the company’s compliance with the regulations. According to the statement, the CMA CGM Group will be compliant with a combination of three solutions: using liquid natural gas powered vessels, advanced air quality systems on board their vessels and, as a core solution, using compatible fuels with 0.50% or 0.10% sulfur.

The new IMO 2020 Regulation on low sulfur emissions affects the global shipping industry and transport costs are expected to rise worldwide. As the cost of very low sulfur fuel oil (VLSFO) is expected to be significantly higher than current high sulfur fuel oil (HSFO), CMA CGM will implement a low sulfur surcharge (LSS20) on CMA CGM ocean freight rates as of December 1, 2019 (date of BL).

Also according to the statement, the LSS20 will apply to all contracts valid for up to three months and tariff rates are available online at http://www.cma-cgm.com/ebusiness/tariffs/charge-finder.

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