The International Maritime Organization (IMO) has introduced new regulations that will significantly improve the global carbon footprint and environmental standards. All sea-going vessels worldwide will have to comply with the new IMO 2020 standards by limiting Sulphur content in fuel oil to a maximum of 0.5%.

In order to comply with the regulations, Transmar is committed to switch to low sulfur oil (LSFO or LSMGO based on regional availability). Currently LSFO is not available in our operating region, so we will be using Low Sulfur Marine Gas Oil (LSMGO).

As the cost of LSMGO (Low Sulphur Marine Gas Oil) is significantly higher than HSFO (Hight Sulfur Fuel Oil), we will be implementing a Low Sulfur Recovery Charge LSRC for contracts with a validity shorter than 3 months.

LSRC will be effective for Arabian Gulf Trade (Jebel Ali, Khalifa Port, Dammam, Jubail) and Port Sudan as of 1st December 2019.

LSRC will be effective for Red Sea Trade (Adabiya, Jeddah) as of 1st January 2020.

(LSRC for reefer cargo will be 20% higher than dry cargo)

For long term contracts, LSMGO will be the price reference for quarterly BAF calculations as of 1st January 2020. The quantum for LSRC will be announced by end of November.

. Nov 14 2019