Facts Worldwide Change in Bunker – The Global Sulphur Cap

 

Dear Customers,

In October 2008, International Maritime organization (IMO) decided to introduce new regulations, to put a global cap and limit sulphur dioxide for international shipping. This will now come into full effect in The Mediterranean as per 1. January 2020.

Sulphur dioxide is dangerous to respiratory systems in humans and animals, therefore the international community, has put increasing efforts in limiting these emissions. Since 2008 shipping has been part of this process.
 
IMO has progressively tightened the maximum limits for Sulphur in marine fuels, and in addition established more stricter limits in the so-called SECA areas, as below. (Sulphur Emission Control Areas).
 
The IMO limits for Sulphur content, in marine fuels have developed as follows:  
The International marine market consumes about 300 million tons of fuel a year, 2/3 of this has historically been HFO. As from 1.1.2020 this fuel must not contain more than 0.50% Sulphur.
DFDS and the remaining part of the Ship owning industry, have several options to comply with these regulations:

1. We continue using marine fuel oil as today, known as HFO Bunkers, with a higher content of Sulphur. We are forced to install exhaust gas cleaning system (namely Scrubbers), which is a significant investment and extensive modification of our vessels.
2. On some vessels, we can run of Gasoil, but abt. 50% more expensive per tons for fuel consumed.
3. We purchase fuel oil with 0.50% Sulphur content, as per IMO regulations, which expected to be 30-40% more expensive, than traditional marine fuel oil.

DFDS has decided to invest, and install Scrubbers on all our vessels calling Turkey, which will be an ongoing process during 2019 and 2020.

Regardless of which solution is implemented, the additional cost is significant for all Shipping Lines.

If further needed, please do not hesitate to contact us.
We will revert with further information.

Best Regards,
DFDS Mediterranean Business Unit