Dear Valued Customer,

Effective from January 1st, the new IMO (International Maritime Organisation) 2020 Low Sulphur Regulation will come into force, requiring all sea-going vessels to comply and reduce sulphur emissions by 85%.

The implementation dates range from 1st December 2019 to 1st January 2020. However, by 1st of January, 2020, the entire global fleet of vessels must either switch to compliant 0.5% low-sulphur bunker fuel or install exhaust-cleaning scrubbers. The shipping lines intend to recover the cost of complying with the new regulation by way of a Low Sulphur Surcharge (LSS).

In very general terms, being planet friendly is going to result in additional costs to the end customer. Most shipping lines have confirmed that they will be introducing a surcharge (it comes by many names and acronyms, depending on the shipping line) effective December 1st, 2019. We do not have confirmed final costs at this stage but expected increases are as below. Please note that they vary from origin to origin:



Estimated Surcharge

AU Domestic Coastal Movements



Asia to Oceania



North America West Coast to AU



North America East Coast to AU



Europe to Oceania



If you have any questions or queries, please do not hesitate to call.