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COSCO’s notice about IMO 2020

According to the resolution of the 72nd session of MEPC of the International Maritime Organization (IMO), the 0.50% limit on sulphur in fuel oil on board ships will come into effect on 1 January 2020.

The resolution is made aiming at promoting global green development and environmental improvement, and benefitting the health and life quality of all human beings. As a reliable carrier with a strong sense of social responsibility, COSCO SHIPPING is now actively preparing itself according to the schedule.

The possible measures that COSCO SHIPPING may take now are to adopt standard-compliant low-sulfur fuel to refit its ships with desulfurization devices, to use LNG clean energy, and so on. Undoubtedly, with the in-depth study of sulfur limitation, COSCO SHIPPING will come up with better solutions in the future.

No matter which measure to take, considerable increment of bunker cost for global carriers is inevitable, and it would be unaffordable for any single carrier alone. In fact, in order to ensure full compliant of the new regulation effective January 1, 2020, COSCO SHIPPING already started to refit some of its vessels and gradually introduce low-sulfur fuel. It means the company’s bunker and related cost composition will change accordingly from 2019. In order to ensure the smooth operation of the company and to promote a healthy and sustainable development of the industry, the company is planning to introduce new bunker charge, surcharge or freight adjustment to offset the increase of bunker cost in accordance with the comprehensive factors including fuel consumption in each navigation area, the proportion of high-sulfur and low-sulfur oil products, and ship loading situation.

COSCO SHIPPING will take the initiative to strengthen communication with its customers in order to help them better understand the changing trend of fuel charges, and inform them of the relevant background and the logic behind bunker cost increase. For any inquiries, please contact company’s local sales for more information.

Source: COSCO
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