On the 1st January, 2020 the International Maritime Organisation Low Sulphur Regulation will be in effect. All sea vessels will need to reduce their sulphur emissions by 85% using liquid natural gas powered vessels, scrubbers or very low sulphur fuel oil.
All methods of compliance will incur an additional cost for the container shipping lines, which they are eager to pass onto shippers.
While some shipping lines have been factoring the increase cost of the IMO2020 compliance into their contract negotiations, Yang Ming are the first to announce a surcharge across all shippers from Asia to Europe, effective from 1st December 2019 of USD 125 per TEU.
A higher surcharge will apply to refrigerated containers.
It is likely that all container shipping lines will now follow Yang Ming’s lead over the next few days and Hyundai have just also announced a surcharge of USD178 FEU from Far East to Europe.