Date: 29 October 2019
Dear Valued Customers,
Subject : IMO 2020 Low Sulphur Fuel Charge Effective 1st December 2019
The International Maritime Organization’s IMO 2020 Low Sulphur regulation will become effective from 1st January, 2020, aiming at improving air quality and reducing marine pollution by stipulating that all shipping companies must cut Sulphur Oxide emission by 85%.The limit for Sulphur in fuel oil used on board ships outside designated areas will be significantly reduced to 0.5% versus the current 3.5%.
Emirates Shipping Line is committed to fully comply with the new regulation in support of reducing SOX emissions thereby ultimately leading to an environmental protection of the globe. We have evaluated in detail, the alternatives available for complying with the new regulation and we have decided to apply the effective but costly solution of using Low Sulphur Fuel Oil in our fleet.
For recovering the additional operational costs associated with the usage of low Sulphur fuel, Emirates Shipping Line will introduce an Environmental Fuel Surcharge per trade by applying the price difference per ton between high and low Sulphur fuel multiplied by a trade coefficient.
An Environmental Fuel Surcharge (EFS) as per below; will be imposed based on a Low Sulphur fuel price of between $500 to US$550 per ton with effect from 1st December 2019. The Environmental Fuel Surcharge (EFS) will be reviewed regularly for necessary adjustment in line with below Matrix and implemented with an advance notice to customers.
We appreciate your support of the new IMO 2020 regulation and our company.
Please contact our local Sales and Customer Service team for bookings and any further assistance.
Emirates Shipping Line