International Maritime Organization (IMO) 2020 Low Sulphur Regulation
Want to know more about the low sulphur IMO 2020 regulation?
Check out this flyer made by the IMO below and reach out to us at Demanko HLC Logistics, Inc. if you have any questions! This initiative to help our environment and improve our health is starting on January 1st, let’s get ready! IMOSulphurLimit
The International Maritime Organization (IMO) has ruled that from 1 January 2020, all marine sector emissions in international waters be significantly reduced. The marine sector will have to reduce Sulphur emissions by over 80% by switching to lower Sulphur fuels. The current maximum fuel oil sulphur limit of 3.5 weight percent (wt%) will fall to 0.5 wt%. IMO 2020 regulations will see the largest reduction in the sulphur content of a transportation fuel undertaken at one time.
The marine sector, which consumed 3.8 million barrels per day of fuel oil in 2017, is responsible for half of global fuel oil demand. IMO sulphur regulations therefore have the potential to be highly disruptive to the pricing and availability of compliant fuels.
What does IMO 2020 mean for my business?
The costs of ocean going freight will increase as the marine sector uses more costly fuels, which has wide reaching consequences across the global economy. In addition to the Steam Ship Lines across the globe other industries will also have to comply with this new regulation and the growing demand for middle distillates will result in upward price pressure on fuels such as diesel and jet fuel. The effects from the upcoming cap on sulphur emissions in marine bunker fuel could even wind up giving you a more expensive air travel and shipping, trucking as well as intermodal transportation in 2020.
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