Switch to Low-Sulphur Fuel Will Lead to Cost Increase in Seafreight

Increasingly strict environmental regulations will cause significant changes in international maritime transport.

As of January 1, 2020, the global limit for sulphur content of ships’ fuel oil on the high seas will change from 3.5 to 0.5 percent according to regulations issued by the International Maritime Organization (IMO). The new sulphur limit will decrease sulphur emissions in seafreight by 80%, which should reduce health risks for humans and help prevent global warming.

The switch to cleaner fuels will lead to a price increase on the part of carriers due to higher fuel costs. Since the fuel costs after January 2020 cannot be estimated right now, it is not possible to make a realistic prediction – however, experts believe that a doubling of prices is a realistic possibility.

Shipping companies are currently planning to stock up on fuel during the second half of 2019 so that the rise in costs will become effective as close as possible to the deadline. The shipping companies will not be able to absorb the increased costs and will therefore pass them on to the end customers.

If you have any further questions about this measure in the interest of environmental protection, your cargo-partner contact person will be glad to assist you.