How IMO 2020 Will Impact the Logistics Industry
On Jan. 1, 2020, a new rule went into effect. The goal of IMO 2020 is to regulate the amount of sulphur a ship may put out through the exhaust. Environmental regulators called it so because IMO or the International Maritime Organization is the UN agency responsible for regulating shipping. Whether it’s trucking companies in Ontario or other locations, IMO 2020 can affect the industry because it is global regulation. How IMO 2020 Impacts Transport Companies in Ontario This new regulation can affect both the trucking and the shipping industries. At the beginning of 2020, there were differences in the price of fuel HSFO and alternatives. While the cost of HSFO had fallen by the end of 2019, it did not help the shipping industry. This is because ships cannot use HSFO unless they put expensive scrubbers in. However, by the end of 2019, the price of Very Low Sulphur Fuel Oil (VLSFO) rose by about 30 percent. Effects on Diesel There are two main ways of getting IMO 2020-c...