With the new ‘Sulphur 2020’ standard the IMO (International Maritime Organisation) has initiated a reduction programme for sulphur oxide emissions in ocean shipping. The effective date for the introduction of the new regulations is 1st January 2020. Specifically ‘Sulphur 2020’ aims to reduce the sulphur threshold to 0.50%.

Either vessels must use more expensive low-sulphur fuel, or they must be equipped with emission control systems, so-called ‘scrubbers’.

Some shipping companies have already announced that they will increase their surcharges before the due date of 01.01.20. During the conversion of the ships, the total cargo capacity will be reduced as the installation of the scrubbers takes approximately 60 days. The available cargo capacity will in any event reduced because both scrubbers and low-sulphur fuel tanks require more space on the vessels. CNY 2020 (Chinese New Year) will only exacerbate the problem.

Further information can be found direct at the IMO:
http://www.imo.org/en/MediaCentre/HotTopics/Pages/Sulphur-2020.aspx