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Dear Clients,

Further to our previous communication in relation to the introduction of law requiring all ocean vessel’s to use LOW SULPHUR FUEL from 1st JAN 2020, we would like to share the below notice received from ocean carrier, Mariana Express Lines.

It summarises the main points that all carriers face. Although not all ocean carriers are applying from 1st DEC, some are still indicating they will only apply from 1st JAN 2020. This though may change, between now and then.

We expect carriers will release further details in the coming days, as they start to release the quantum that they will bill from 1st DEC (if being applied) 2019.


Dear Valued Customers,

The International Maritime Organization (IMO) has introduced new regulations restricting all sea-going vessels to use fuel with maximum 0.5 % Sulphur content from 1st Jan 2020 (unless scrubbers are installed). This will significantly improve the global carbon footprint of ocean carriers and MELL fully supports this initiative for a cleaner environment.

Current Heavy Fuel Oil (HFO) that we are using will no longer be compliant and we will need to switch to Low Sulphur Fuel Oil (LSFO). This fuel type commands a higher price per tonne & will result in higher operating costs on the trades that we service.  In accordance with IMO 2020 we will not be able to carry any non-compliant fuel from 1st January 2020 and as such the switch to new compliant fuel types will have to be effected from end of November 2019 in preparation for this date. Therefore for cost recovery, we will be implementing a Low Sulphur Fuel Recovery (LSR) with effect from 1st December 2019 onwards with periodic review based on HFO and LSFO price differences.

We expect that the pricing of LSFO will be volatile over the coming months and we would like to provide the attached information so that all customers are prepared for this upcoming surcharge. Thank you for your understanding and support for a cleaner environment.

Thank you.

Yours sincerely,

Mariana Express Lines Pte. Ltd.


Dion Williamson
NSW Branch Manager


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