[Watch] CMA CGM Puts Cost of Sulfur Cap Compliance at $160/TEU

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  • CMA CGM plans to use LNG in its future containerships.
  • The cost of retrofitting 9 ships is estimated around $160 /TEU.
  • The company’s sales policy will be reviewed according to the fuel surcharges.

In a recently released video, the Marseille headquartered CMA CGM says it has decided to opt for the use of 0.5% fuel oil for its fleet, reports CMA CGM.

The plan is to significantly invest in LNG to fuel some of its future containerships (9 ships on order) by retrofitting exhaust gas scrubbers in a number of high capacity ships.

What’s the cost?

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.

How will it affect sales policy?

“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.

Disclaimer: This video is intended for informational purpose only. This may not be construed as a news item or advice of any sort. Please consult the experts in that field for the authenticity of the presentations.

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SourceCMA CGM

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