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How the IMO 2020 Regulation Changed Sea Freight

The Bill of Lading (B/L) is one of the most important documents in ocean freight shipping. It serves as a receipt of goods, a contract of carriage, and a title of ownership all in one.

Our team of UI/UX experts conducts a thorough evaluation o the submitted element, analyzing its usability, functionality

Why Was IMO 2020 Introduced?

Ocean freight is essential to global trade, but traditional marine fuels produced high sulfur oxide emissions, contributing to air pollution, acid rain, and respiratory issues. IMO 2020 aimed to:

  • Improve air quality in port cities and coastal areas
  • Reduce maritime environmental impact
  • Support the United Nations Sustainable Development Goals

Key Changes in Sea Freight Operations

01. Low-Sulfur Fuel Oil (LSFO) Adoption

Most carriers switched to compliant LSFO, which costs more but meets the regulation.

02. Scrubber Installation

Some ships installed exhaust gas cleaning systems (scrubbers) to continue using high-sulfur fuel oil legally.

03. Increased Freight Costs

The higher price of LSFO led to fuel surcharges passed on to shippers.

01. Low-Sulfur Fuel Oil (LSFO) Adoption

Carriers had to overhaul fuel procurement, storage, and handling practices.

Environmental Benefits

  • Estimated 77% reduction in sulfur oxide ships
  • Better air quality near major trade ports
  • Increased industry focus on green technology

Challenges and Industry Response

  • Fuel availability issues in some regions
  • Initial compliance uncertainty for smaller operators
  • Encouraged investment in alternative fuels

Final Thoughts

The IMO 2020 regulation reshaped how carriers operate, pushing the industry toward cleaner, more efficient shipping. While costs increased, the long-term environmental and health benefits make this a vital step in the evolution of global ocean freight.

03 Comments

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February 10, 2025
Frank Flores
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February 10, 2025
Charlie Tushar
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February 10, 2025
Fatma Sariqul
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