go to Website
Mediaroom Customers Journalists
Watchlist (0)
back

IMO 2020 regulations are making ships cleaner

Commonly known as IMO 2020, the new environmental guidelines from the International Maritime Organization for global shipping traffic will take effect in January 2020. From then on, all ships on the open sea will be required to reduce their emissions of sulfur oxides by 85 per cent. This applies worldwide to all fuels used on the open sea.

IMO 2020 is an important step towards achieving a better ecological balance sheet for the industry, as international sea transportation generates about one billion metric tons of carbon dioxide each year and is responsible for 3 percent of all fine particulate matter created by human activity.

Carriers will have a number of more environmentally friendly options available to them. For example, they may choose to continue using heavy oil but also install special exhaust gas cleaning systems (scrubbers); or switch to alternative fuels such as liquefied natural gas (LNG), very low sulfur fuel (VLSF), or marine diesel oil (MDO) sein.

The relevant country’s port authority is responsible for compliance with IMO 2020 and can check this with a detector and the ship’s logs. Violators will be subject to fines, ship detention, or even imprisonment.

Being a logistics service provider, DACHSER does not operate its own ships, but works with major shipping lines. “We, too, are interested in finding the most sustainable way to handle our transports,” says Rolf Mertins, Head of Global Management Ocean at DACHSER. “At the same time, we want to offer our customers scheduling reliability.”

Based on collaboration with partner carriers, DACHSER has now developed its own fuel cost model, the DACHSER Bunker Adjustment Reference Floater (DBAF). Replacing the Standard Bunker Factor (SBF) on mid- and long-term transactions, the DBAF is calculated based on the fuel prices of all relevant trades. “On this basis, we can calculate customers’ fuel-related costs irrespective of the carrier option,” Mertins concludes.

Effective December 1, 2019, there will be a Transition Environmental Fuel Fee for all Less-than-Container-Load (LCL) Freight All Kinds (FAK) businesses until further notice. The fee is in addition to any bunker charges.

For more details, please get in touch with your local DACHSER representative.

DACHSER worldwide
Contact us
Bookmark article
Share article
Contact Katrine Cheng
katrine.cheng@dachser.com

You might also be interested in

01/22/2021
DACHSER Mexico delivers shipment to automotive manufacturer by helicopter

Special requirements call for special solutions: for an automotive supplier from Celaya in central Mexico, DACHSER Mexico swiftly organized a helicopter transport to the capital some 300 kilometers away. With the threat of a production stoppage looming, this unusual logistics solution saved time and, above all, money.

Read
04/21/2020
Update on DACHSER Air & Sea Logistics operations

With this update DACHSER would like to inform about the current DACHSER Air & Sea Logistics operations across the regions APAC, EMEA and Americas. In the attached document (see download below) it is listed whether a country organization of DACHSER is operational or, if only limited or not at all, why this is the case. Since the situation in the countries may change rapidly, the attached document will be updated on a regular basis and published on our website.

We sincerely regret any inconveniences caused to our customers due to the pandemic. At DACHSER, we have contingency measures in place and will offer our customers the best alternative solutions to keep the supply chain running. Anyhow, the situation at ports, airports or customs authorities might cause delays. Furthermore, the capacity situation on the global airfreight market is very tense as there are basically no passenger flights operating at the moment.

At the same time, DACHSER has installed strict hygiene measures (e.g. home office) to ensure a safe working environment and to do our part in stopping the spread of the virus. DACHSER is trying to keep the impact of these measures as low as possible, however, together with the official measures by the governments, the precautions may lead to some delays in the operations.

In case of any questions and/or queries, please feel free to contact your local DACHSER representative.

Read
02/21/2020
DACHSER organizes special charters to China

In response to the restricted air freight capacity situation caused by COVID-19, DACHSER Air & Sea Logistics has drawn up a charter contingency plan. As a result, customers can currently rely on a robust and reliable premium flight service from Frankfurt to China.

Read
11/20/2020
APAC countries signed world's largest free trade agreement

On November 15, 2020, leaders from 15 Asia Pacific nations came to an agreement to form a free trade bloc under the Regional Comprehensive Economic Partnership (RCEP). The agreement is intended to facilitate trades among the member countries by removing tariffs and stimulate the economy amid the COVID-19 pandemic.

Main points at a glance:

  • RCEP is a free trade agreement in the Asia-Pacific region.
  • Fifteen countries signed the agreement including Australia, Brunei, Cambodia, China,  Indonesia, Japan, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, South Korea, Thailand, and Vietnam.
  • With the participation of the 15 countries, they have formed the world's largest free trade zone, covering about 30% of the world's population and nearly 30% of global GDP.
  • China’s presence notably increases the impact of the agreement and boosts the total GDP of the RCEP member countries.
  • India did not join the partnership over concerns that cheap import products might pose a harm to local producers.
  • The new free trade zone is bigger than the US-Mexico-Canada Agreement (USMCA) and the European Union.
  • The RCEP will reduce taxes on most goods over a 20-year period, streamline customs procedures, regulates the field of intellectual property and digital trade and replace a number of bilateral trade agreements in the region with one set of rules.
  • Some benefits are expected to be seen in 2021 once participate nations complete their domestic ratification procedures.

What does it mean to the global supply chain?

  • The RCEP is expected to eliminate a range of tariffs and quotas on most of the goods traded within the region over a 20-year period.
  • The "rules of origin” may have the biggest impact. Under RCEP, parts from any member nation would be treated equally, this gives companies in RCEP member countries an incentive to look for supplier within the region.
  • Many of the RCEP member countries already have bilateral free trade agreements between each other, RCEP would streamline the various overlapping preferential terms. This reduces complexity and reduce costs for businesses.
  • China, Japan and South Korea are the traditional key players for electronics, automotive, textiles and garments industries, having them in the RCEP would ensure supply chain stability to ASEAN countries.
  • It gives an incentive for companies to look for supplier within the RCEP member countries, thereby laying the foundation for enabling an accelerated GDP growth within the region.

As RCEP will further fuel the ongoing manufacturing shifts within Asia, it not only affects companies within the member countries but is also relevant to any companies worldwide who have business in the region.

Feel free to reach out to us at dachser.apac-asl@dachser.com to know more about the new free trade agreement. Together we can review your current supply chain locations and identify steps to grasp the greatest benefits under the impact of RCEP.

Read