I.M.O. 2020: What You Need to Know About the Low Sulfur Fuel Initiative
What is IMO 2020? The International Maritime Organization (IMO) has ruled that, beginning January 1, 2020, marine sector emissions in international waters are to be reduced substantially. The marine sector/ocean carriers will have to reduce sulfur emissions by over 80% by switching to lower sulfur fuels.
Who is the IMO? The International Maritime Organization is an agency of the United Nations formed to promote maritime safety. IMO ship pollution rules are contained in the “International Convention on the Prevention of Pollution from Ships” — known as MARPOL 73/78.
Why is IMO 2020 being implemented? Low sulfur fuel is essentially cleaner for the environment and better for engines. It means fewer particulates (fine, sooty emissions), which have been linked to asthma and cancer, and fewer sulfur oxides, which cause acid rain.
What is LSS? The Low Sulfur Surcharge (LSS) is a surcharge levied by the ocean carriers to cover the costs associated with using low sulfur fuel in line with the IMO 2020 Sulfur Cap regulation.
Ocean carriers, beginning December 1, 2019, will begin to charge an LSS on all cargo to and from the United States. The low sulfur charge will vary by carrier and by coast (East, West, and Gulf). Early indications are that the LSS will range between $180 – $400 per TEU (twenty-foot equivalent unit).
Contact Aeronet Worldwide, or reach out to your representative with any questions regarding IMO 2020.
