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A FUNDAMENTAL CHANGE FOR THE GLOBAL SHIPPING INDUSTRY

08.10.2019
January 2020 has been set as the implementation date for a significant global reduction in the Sulphur content of the fuel oil used by ships. It is arguably the most impactful environmental regulation to date in Ocean Transportation and has far-reaching technical, operational and commercial consequences.
The goal of the cap is to significantly and progressively reduce sulphur limits within all areas of international shipping. A cap of 0.5% sulphur will require all shipping, to switch to low sulphur fuels or an equivalent solution (except in areas where stricter regional regulations have already been applied since 2015) from 1st January 2020.
To achieve this, a combination of higher fuel costs and fleet investment will be required for all affected ferry operators. In order to cover additional costs, ferry operators will implement a new BAF as from 1st of January, generating higher ferry ticket prices.