VIDEO: CMA CGM puts cost of sulfur cap compliance at $160/TEU

SEPTEMBER 24, 2018 — Marseille headquartered container shipping giant CMA CGM is taking an “all of the above” approach to achieving compliance with the IMO sulfur cap when it takes effect on January 1, 2020.

In a just released video, CMA CGM says it has decided to opt for the use of 0.5% fuel oil for its fleet, and to also invest significantly by using LNG to fuel some of its future containerships (9 ships on order) and by retrofitting exhaust gas scrubbers in a number of high capacity ships.

All these measures represent a major additional cost estimated, based on current conditions, at an average of $160 /TEU (twenty-foot equivalent unit).

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

“The implementation of this new regulation, which represents a major environmental advance for our sector, will affect all players in the shipping industry. In line with its commitments, the Group will comply with the regulation issued by the IMO as from January 1, 2020. In this context, we will inevitably have to review our sales policy regarding fuel surcharges,” says Mathieu Friedberg, Senior Vice President Commercial Agencies Network.

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