EUROPEAN shipping giants MSC and CMA CGM have published customer advisories on how they will charge for higher cost fuel to comply with the low-sulphur fuel costs mandated by the UN's International Maritime Organisation (IMO) starting on January 1, 2020.

The two they will switch to new formulas starting the first of next month. A year hence, the UN agency orders that ship operators must either burn marine fuel with a maximum sulphur content of 0.5 per cent or equip their ships with scrubbers to remove sulphur from engine exhaust. 

The vast majority of ships will, initially at least, have to purchase low sulphur fuel to comply with the IMO regulation since few ships are equipped with scrubbers, reports American Shipper.