CMA CGM on Low Sulphur IMO 2020 Regulation

Sarah Carter
Sarah Carter

25 September 2018


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%.

This new regulation aims to reduce the environmental impact of the industry and significantly improve air quality, an initiative in which the CMA CGM Group has been involved for more than 15 years, said a press release from the shipper.

CMA CGM has decided to favor the use of 0.5% fuel oil for its fleet, and to invest significantly by using LNG to power some of its future container ships (9 ships on order), notably resulting in a 99% reduction in Sulphur emissions and by ordering several scrubbers for its ships.

All these measures represent a major additional cost estimated, based on current conditions, at an average of 160 USD / TEU (twenty-foot equivalent unit).

This additional cost will be taken into account through the application or adjustment of fuel surcharges on a trade-by-trade basis.

"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," explains Mathieu Friedberg, Senior Vice President Commercial Agencies Network.