Western & Southern Africa Export & Shipping – IMO 2020 Effect on BAF Surcharge

The International Maritime Organization (IMO) has introduced new regulations to reduce emissions as a key part of its commitment to cut shipping emissions by 40% by 2030 and by 50% in 2050 (from 2008 levels).

From 1st January 2020, the limit for sulphur in fuel oil used on board ships operating outside designated emission control areas will be reduced to 0.50% m/m (mass by mass), from 3.50% m/m.

This is in response to climate change and the various benefits which Co2 emission reductions will bring:

• Premature deaths avoided
• Significant reduction in shipping’s negative effect on human health

Reductions in:
• Stroke
• Asthma
• Cardiovascular Disease
• Lung Cancer
• Pulmonary Disease

Cutting sulphur emissions helps prevent acid rain, which means:
• Less harm to crops, forests and aquatic species
• Tackling ocean acidification

How can ships comply?

  • Use a compliant fuel oil with a sulphur content that does not exceed 0.50%
  • If exceeding 0.50%, use an equivalent e.g. an Exhaust Gas Cleaning System (“scrubber”)
  • Use an alternative fuel, e.g. LNG, methanol
  • Use onshore power supply when at berth

The annual Co2 emissions consumed by the Shipping industry equates to the same levels as the fifth-most polluting nation in the world.

However, Ships have always been the most sustainable way to transport commodities and goods. Ships are increasingly becoming even more energy efficient. IMO regulations on energy efficiency support the demand for ever greener and cleaner shipping. A ship which is more energy efficient burns less fuel so emits less air pollution.

As a whole, the industry is expecting to pay an additional $60 billion annually following the implementation of the low-sulphur cap. Inevitably, this will lead to an increase in supply chain costs for all parties involved in Importing & Exporting.

For more information on how Walker Movements is handling IMO2020, please contact us:

+44 (0) 1332 502450

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