IMO 2020 – Customer Advisory

IMO 2020 Low Sulphur Summary

The International Maritime Organization

(IMO) has introduced new regulations

restricting all sea-going vessels to use fuel

with maximum 0.5 % Sulphur content.

This will significantly improve the global carbon footprint and

environmental standards.

The new regulations will come into force

on 1 January 2020.

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All our ships will be supplied with compliant fuel with a maximum sulphur content of 0.5%

ECA Zone - Our ships will switch to other types of compliant fuel ( MGO/ULSFO 0.1%) as per regulations by the countries.

30% of our fleet will be fitted with open-loop scrubber.

Our ships will switch to compliant fuel in the country where usage of open-loop scrubber is not allowed.

1. Compliant Fuel

2. Open-loop Scrubber

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Implementation

In order to recover the additional costs associated with the IMO2020 compliance, a Low Sulphur Fuel Recovery (LSR) will be implemented wef 1st December 2019.

Our bunker surcharge (BSH) currently being levied will remain.

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LSR will apply to all shipments wef 1st

December 2019 (ship on board date).

The LSR is calculated based on following key components :

Round voyage bunker consumption

The fuel price differential between the

HSFO (3.5% ) and the VLSFO (0.5% )

Trade factor

Low Sulphur Fuel Recovery (LSR)

LSR = (VLSFO – HSFO) x Trade Factor

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Key Remarks

Monthly review of BSH and LSR will be done.

The BSH and LSR will be adjusted in accordance to the

USD25/ton tier basis.

Notice Period: Our customers will be given 30 days

notification for any subsequent adjustment.

The LSS which was levied in January 2019 for the ECA zone

ports will be superseded with 1st December 2019 LSR

implementation.

LSR Implementation date: To ensure full compliance from

1st January 2020, PIL will start supplying compliant fuel to

our ships as early as 1st December 2019. Therefore, LSR will

be implemented on 1st December 2019 instead of 1st

January 2020.

7Notes: 1st Dec 2019 LSR will be notified by 1st Nov 2019, subject to regulatory filing

* Reefer containers = 1.5 x LSR for Dry containers

LSR Simulation for Dry Containers

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For a greener shipping Industry

IMO2020 Compliance will present significant

challenges for the shipping industry.

IMO 2020 is a joint commitment by PIL and

our valued customers.

We will be ready !

Thank you …..