IMO 2020

IMO 2020 is the International Maritime Organization rule that cut the maximum sulphur content of marine fuel used outside emission control areas from 3.50% to 0.50% from 1 January 2020.

2020 International Worldwide Enforced by IMO MARPOL Annex VI, Regulation 14

What it requires

Ships must burn fuel oil with no more than 0.50% sulphur by mass, or use an approved equivalent such as an exhaust gas scrubber. Since 1 March 2020 ships without scrubbers may not even carry non-compliant fuel. Inside emission control areas the limit is 0.10%, a regime that covers the Mediterranean since 1 May 2025. Flag states and port state control inspect bunker delivery notes and fuel samples, and national laws set the fines and detentions.

Why it matters

IMO 2020 is a permanent part of the ocean freight cost base that shippers pay through bunker surcharges. Compliant low-sulphur fuel costs more than the old high-sulphur grade, and carriers pass that difference through bunker adjustment factors on every container. For example, a brand importing 40-foot containers from Asia sees a BAF line on each invoice that moves with low-sulphur fuel prices. Landed cost models and quarterly freight budgets should track that surcharge separately from the base rate.

Related laws

Sources

Not legal advice.