From 1st of January 2020, sulphur oxide emissions from ships will be reduced considerably under a forthcoming International Maritime Organization (IMO) rule.
The limit for sulphur in fuel oil used on board ships operating outside designated emission control areas will be reduced to 0.50% mass by mass. The current limit is 3.50% so the change is significant and – for most ships – will mean a switch to new types of compliant fuel oils, so-called very low sulphur fuel oil (VLSFO). The IMO MARPOL regulations limit the sulphur content in fuel oil. So ships need to use fuel oil which is inherently low enough in sulphur, in order to meet IMO requirements. According to technial requirements begins six months before the requirements enter into force. Today, all our vessels have switched to low sulfur fuel.
These new blends are likely to cost more initially than the "heavy fuel oil" bunkers (fuel) used by the majority of ships today. Differential cost is 2,5 times more expensive than heavy fuel oil and shortage in the market will probably lead to a further increase the price.
Realizing the delicacy of the matter, we regret to inform you that the ocean freight increased for 50 USD per unit from 1st of December 2019.
We hope for your understanding and further cooperation.
Navis Shipping LLC.