German container shipping company Hamburg Südamerikanische Dampfschifffahrts-Gesellschaft A/S & Co KG (Hamburg Süd) will introduce an Environmental Fuel Fee (EFF) effective 1 December 2019.

According to a press release from the German carrier, EFF is to cover the increase in fuel-related costs associated to the implementation of the IMO 2020 regulation.
 
The EFF tariffs have been calculated using the price difference between high sulfur fuel and low sulfur fuel. The difference calculated is 193,08 USD/ton.

From 1st January 2020, the new regulation will come into force to reduce air pollution from ships globally. Whereas today ships can use fuel with up to 3.5% Sulfur content (outside Emission Control Areas), the new global Sulfur cap will be 0.5%.

The cost of compliance with the new regulation will be significant, so the cost of shipping will increase.

Many carriers intend to be compensated for the higher fuel costs or investments in scrubbers they incur during the two months before permanent floating LSFO surcharges covering their entire fleet takes effect Jan. 1.