The International Maritime Organisation (IMO) has imposed new regulations on shipping lines from 1 January 2020.
Vessels must now use cleaner low sulphur fuels with a sulphur content of 0.5% instead of the existing average of 3.5%. The aim is to significantly reduce gas emissions. Carriers breaching the new rules will face heavy financial penalties.
The existing Bunker Adjustment Factor surcharge will be adjusted from 1 January to reflect the higher cost of low sulphur fuels which is estimated to be around 35%. Some lines are saying that the cost of a full container will rise between USD180 and USD400.
Deep sea shipping is a competitive business and it remains to be seen just how much of the increased low sulphur fuel costs the lines will pass on to exporters and importers.
At International Forwarding, our quotations and invoices already show a BAF surcharge if applied by the line and customers can expect this to be amended to IMO BAF surcharge to reflect the additional costs arising from the above changes.
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Shipping by sea is the cost-effective choice when time is not an issue. We handle the entire process from collection to delivery, and offer both FCL and LCL options.
For fast, flexible quotes or to discuss your sea cargo needs, call us on 01675 434690 or email email@example.com.
Or find our more on our Sea freight services page.