French container shipping company CMA CGM has unveiled a plan to use 0.5% fuel oil to run its vessel fleet in compliance with the International Maritime Organization’s (IMO) new low sulphur regulation.
The regulation, which is scheduled to become effective from 1 January 2020, will require all the shipping companies to lower their sulphur emissions by 85%.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
As part of the new plan, CMA CGM will invest significantly in order to abide by the IMO regulation.
The company plans to use liquefied natural gas (LNG) to power some of its future container ships to help reduce 99% sulphur emissions. CMA CGM currently has a total of nine ships on order.
CMA CGM also intends to place an order for several scrubbers for its ships.
CMA CGM has estimated that these measures will bring an additional cost of around $160 per twenty-foot equivalent unit (TEU) on its customers.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe additional cost is expected to be applied or adjusted through fuel surcharges on a trade-by-trade basis.
CMA CGM Commercial Agencies Network senior vice-president Mathieu Friedberg said: “The implementation of this new regulation, which represents a major environmental advance for our sector, will affect all players in the shipping industry.
“In line with its commitments, the group will comply with the regulation issued by the IMO as from 1 January 2020.
“In this context, we will inevitably have to review our sales policy regarding fuel surcharges.”
In a separate development, IMO said that there will be no delay in implementing the 0.5% sulphur fuel cap regulation.
IMO is currently working with its Member States and the industry to support the implementation of the directive.
