06 Oktober 2018

[061018.EN.BIZ] CMA CGM Readies For Low-sulphur Day, But It Will Cost US$160/TEU Extra


FRENCH shipping giant CMA CGM says it will be 100 per cent compliant on January 1, 2020 when the UN's International Maritime Organisation's (IMO) Low Sulphur Regulation comes into force - but it will cost shippers US$160 per TEU extra when that happens.

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, the Marseille-based company said..

CMA CGM will use fuel that only emits 0.5 per cent sulphur in its exhaust by burning LNG in new ships and deploying scrubber technology in older vessels.

"All these measures represent a major additional cost estimated, based on current conditions, at an average of $160 per TEU," said the company statement,

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

"In this context, we will inevitably have to review our sales policy regarding fuel surcharges," said CMA CGM vice president Mathieu Friedberg. 

Source : HKSG.

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