On January 1st, 2020, the International Maritime Organization (IMO) regulation came into force, it aims to reduce the emission of sulfur dioxide (SO2) into the environment – IMO 2020.
The Agreement limits the sulfur content of the fuel used on board ships, thereby reducing pollution from the shipping industry and making it more sustainable regarding the emission of this gas. The measure is being adopted on a mandatory basis and on an equal way for ships from all countries that are part of the United Nations (UN). It establishes that the limit should go from a volume of 3.5% to 0.5%, starting in 2020.
In order to be able to achieve the goals established by the new regulation, shipowners are using alternative fuel oil options and, naturally, all these changes and adjustments generate expenses that are directly impacting on the fuel costs (bunker) of ships, especially in the first months after the implementation of the necessary measures.
In this scenario, many shipping companies around the world have started to apply, since the beginning of December, a tariff whose goal is to absorb this additional cost and offset the increase in fuel.