Brazil

Client Advisory - LSS

Dear Customer,

From January 1st, 2020 on, the new IMO (International Maritime Organization) 2020 Low Sulfur Regulation will be effective. All sea-going vessels worldwide will have to comply and reduce their sulfur emissions by 85%.

To comply with the regulation, sulfur in fuel oil must be reduced from 3.50% to 0.50%, in addition to the 0.10% sulfur limit already effective in the Emission Control Areas (ECA). This aims to reduce the amount of sulfur oxide emissions and should have major health and environmental benefits globally, including improving air quality and reducing risks of acidification of the oceans.

The CMA CGM Group will be compliant with a mix of 3 solutions: using liquid natural gas-powered vessels, using advanced air quality systems onboard our vessels, and as the main solution, using compliant fuels with 0.50% or 0.10% sulfur.

The new IMO 2020 Low Sulfur Regulation impacts the global shipping industry and shipping costs are set to increase worldwide. As the cost of the Very Low Sulfur Fuel Oil (VLSFO) is expected to be significantly higher than the present High Sulfur Fuel Oil (HSFO), CMA CGM will implement a Low Sulfur Surcharge (LSS20) on top of CMA CGM ocean freight charges, effective as from December 1st, 2019 (BL date).

The LSS20 will be applicable to all contracts with validity up to three months and the tariff values are available online at http://www.cma-cgm.com/ebusiness/tariffs/charge-finder.

Please contact your local CMA CGM office should you require additional information.

We remain at your disposal.

Kindest Regards,

CMA CGM