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CaroTrans Export Advisory 19-011 IMO2020 Surcharge 

Issue Date: November 14, 2019

CaroTrans Export Advisory 19-011 IMO2020 Surcharge 

The International Maritime Organization has introduced regulations to limit the Sulphur content in fuel oil used on ships operating outside designated emission control areas to 0.50% m/m (mass by mass) by January 1, 2020. This will significantly reduce the amount of Sulphur oxides emanating from ships and should have major health and environmental benefits for the world, particularly for populations living close to ports and coasts.

 http://www.imo.org/en/MediaCentre/HotTopics/Pages/Sulphur-2020.aspx

Many of our partners have advised that they will begin using low Sulphur fuel as early as October and no later than December to ensure full compliance by 2020. This compliance comes at a significant cost, and our partners have introduced fuel surcharge increases.

To recover these costs, Carotrans is introducing the IMO2020 surcharge effective December 15, 2019:

Origin

Destination

IMO2020

US East Coast & Gulf

Asia

$2

US West Coast

Asia

$1

All US Origins

Oceania

$8

All US Origins

Europe

$2

All US Origins

Mediterranean

$3

All US Origins

Middle East

$3

All US Origins

India Sub Con

$2

All US Origins

South Africa

$8

All US Origins

East Africa

$4

All US Origins

West Africa

$4

All US Origins

East Coast South America

$4

All US Origins

West Coast South America

$4

All US Origins

Central America

$5

All US Origins

Caribbean

$5

The surcharge also applies to Transshipment cargo. The surcharge is W/M = 1 CBM/1000 KGS (or 1 CBM/500 KGS for Caribbean and Central America). Min1 CBM.

Carotrans fully supports these environmental efforts. Please contact us with any questions

www.carotrans.com