From January 1st, 2020, the International Maritime Organisation (IMO) Low Sulphur Regulation will be in effect, which means all sea-going vessels will have reduce their sulphur emissions by 85%, using liquid natural gas-powered vessels, scrubbers or Very Low Sulphur Fuel Oil.
All methods of IMO2020 compliance incur additional costs for container shipping lines, which they are eager to pass on to shippers, in the form of surcharges.
Most major shipping have already announced Bunker Adjustment Factors (BAF), effective 1 January 2020, which are being factored into contracts with their largest shippers (BCOs).
Maersk Line has indicated a ‘high acceptance’ by customers in their contracts, accounting for around half of the Danish shipping giant’s volumes.
Yang Ming is the first container shipping line to announce a new Bunker charge for IMO2020, applicable to ALL shippers from Asia to Europe, effective from 1st December 2019 @ USD 125 per teu.
Higher surcharges apply to refrigerated containers.
It is HIGHLY LIKELY that all container shipping lines will follow Yang Ming’s lead in the coming days.