2020 Sulphur Cap

Improving the environmental performance of the container shipping supply chain is a common goal shared by shipping lines, shippers, freight forwarders and non-vessel operating common carriers, as well as governments, regulators, and the public around the world.

The UN International Maritime Organization requires that from 1 January 2020, Sulphur content in the fuel used for international shipping must be limited globally to 0.5%, compared with the current standard of 3.5%, in order to minimize emissions of Sulphur oxides from ships. 

MSC Mediterranean Shipping Company S.A.’s operating costs are expected to increase significantly as we continue to prepare for the 2020 low-Sulphur fuel regime. We are therefore introducing a new Global Fuel Surcharge as of 1 January 2019 in order to help customers plan for the impact of the post-2020 fuel regime.

The new MSC Global Fuel Surcharge will replace existing bunker surcharge mechanisms and will reflect a combination of fuel prices at bunkering ports around the world and specific line costs such as transit times, fuel efficiency and other trade-related factors.

The cost of the various changes we are making to our fleet and its fuel supply is in excess of two billions of dollars (USD) per year.

MSC operates a modern, green fleet and seeks to operate in a sustainable and responsible way, guided by social and environmental values in its business plans and practices. The company is committed to contributing to global efforts to reduce ship emissions and fully supports the UN IMO’s work in this area.

A plan to optimize energy efficiency through continuous evaluation of trade route networks is also expected to help limit fuel use and improve service reliability.

Further details will be provided in due course.