The International Maritime Organization (IMO) Low Sulphur Regulation will be in effect January 1st, 2020, requiring all vessel operators to reduce their sulphur emissions by 85%.
To date vessel operators have been using high sulphur fuel oil (HSFO) with a sulphur content of up to 3.5 percent. IMO 2020 regulations require using fuel with a sulphur content of 0.5 percent or lower.
Effective December 2019 carriers have started to use IMO 2020 compliant fuels VLSFO / MGO, which tend to be more expensive than the Heavy Fuel Oil (HFO) currently used – impacting the overall BAF calculation.
New low sulphur charges have been implemented on the majority of the sea routes with the whole program coming into effect on 1 January, 2020
Check out the video about the IMO changes: video