IMO LOW SULPHUR REGULATION – 1ST JANUARY 2020. IMO 2020.
To all clients, shippers, and business partners of UAFL
Dear Shipper / Valued Client,
On 1st January 2020 the biggest single change to ever confront the Shipping Industry, the introduction of IMO 2020/ The Sulphur Cap, will come into effect. This change will affect all ships in the world, no matter the Ship type, and all Carriers will have to comply. The aim of this new regulation is to reduce the amount of Sulphur oxide (SOx) released into the atmosphere; benefiting the environment, and our collective health.
To meet the SOx cap requirements, Carriers will have two options:
1. Install a scrubber on board washing out the Sulphur content but allowing continuing use of High Sulphur Fuel (HFO)
2. Use a Low Sulphur fuel (LSFO) containing max 0.5% Sulphur – MGO / LSFO / ULSFO
LSFO is comparatively more expensive than HFO. Switching to LSFO will therefore be costly. The emissions of Low Sulphur Fuel are immediately compliant to the new regulations, and there is no toxic by-product or adverse effect on the environment.
How will UAFL respond?
After carefully weighing the options, UAFL has decided that switching to LSFO is the best solution which will allow us to both comply to the regulation and contribute to the aim of the regulation (reducing environmental pollutants). This decision, however, will have an impact on how we structure our pricing – especially in relation to Bunkers. We will start to prepare our vessels for the LSFO in October 2019 to ensure that we are fully compliant by the 1st of January 2020.
Our new pricing structure will therefore be implemented in October 2019.
We will be circulating more information on our IMO 2020 plans, as well as details on the changes to our pricing in due course.
We thank you for your understanding and continued cooperation.