IMO 2020 is a new International Maritime Organization (IMO) regulation for the use of Low Sulphur Fuel effective Jan 1st, 2020. This regulation is the largest in a series of IMO measures to reduce marine pollution across the entire shipping industry and ultimately achieve a CO2 emission reduction consistent with the Paris Agreement temperature goals. The regulation will see a decrease in the sulfur content in fuel from 3.5% to 0.5% (mass by mass).
What does the new regulation entail?
The IMO 2020 regulation means that ships will have to reduce their sulfur emissions by 85%. Thanks to the new regulation, the shipping industry will transition to becoming much more sustainable. Steamship lines will be passing on the increase in operating cost to freight forwarders and customers via surcharges.
Steamship Lines have three technical options to ensure compliance with IMO 2020:
Utilize Very Low Sulphur Fuel Oil (VLSFO) with 0.5% sulfur content.
Liquified Natural Gas (LNG)
Invest in LNG-powered vessels.
Exhaust Gas Cleaning Systems
Retrofit vessels by installing “Scrubbers” that clean the fuel.