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Are You Ready For January's Sulphur Fuel Hikes?

With a new year on the horizon, businesses look set to be hit with a rise in global surcharges on shipping lines linked to new measures involved in adapting to sulphur oxide targets that will be brought in from January.


The International Maritime Organization (IMO) rule has been designed to reduce emissions from ships considerably. The current limit for sulphur in fuel oil onboard ships operating outside designated emission control areas is 3.5 per cent mass by mass - but this will be reduced to 0.5 per cent. In designated emission control areas, the limit will remain unchanged from 0.1 per cent.


The Irish Freight Transport Association has now said that this could add £21 million a year to transport costs, with about 850,000 freight movements taking place between Northern Ireland and Britain last year.


Policy manager in the north Seamus Leheny said these costs can’t be absorbed by logistics providers and as such will have to be passed along to manufacturers, retailers and distributors.


“This is the new normal, so shipping companies should be including this in normal commercial pricing arrangements. These changes have been known about for a long time and could have been factored into all business plans for 2020. They are not temporary, nor are they different to what is being done anywhere else in the world,” he was quoted by the Irish News as saying.


Being upfront with customers about potential price increases is one way that businesses can prepare for the rollout in January. If you’re worried about how your operations may be affected, get in touch with Hull shipping agent Seaway Logistics today.


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