The CMA CGM Group says the measures the company is taking to comply with the upcoming 2020 sulphur cap will lead to additional cost of approximately 160 USD/TEU.
The new International Maritime Organization (IMO) Low Sulphur Regulation will be effective from 1 January 2020 and will require all shipping companies to reduce their Sulphur emissions by 85%.
To comply with this new regulation, CMA CGM has decided:
- to favour the use of 0.5% fuel oil for its fleet,
- to use LNG to power some of its future container ships (nine ships on order), notably resulting in a 99% reduction in Sulphur emissions, and
- to order several scrubbers for its ships.
Fuel Surcharges
Together, the company expect these measures to cost an average of 160 USD/TEU, based on current conditions. This additional cost will be taken into account through the application or adjustment of fuel surcharges on a trade-by-trade basis.
'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,' explains Mathieu Friedberg, Senior Vice President Commercial Agencies Network.
Watch a video about CMA CGM's energy transition ambition below.
Picture: The CMA CGM Marco Pole (by CMA CGM).
