As per January 1st 2020, the fuel on which ships operate, is restricted to a maximum sulphur content, of 0,5%. Previously the limit was 3.5%. In the so-called Emission Control Areas (ECA zones) even stricter regulations, which limit the sulphur content to 0.1%, are maintained. These environmental areas currently cover Northern Europe, the Baltic Sea area, USA, Canada and parts of Asia. Vessel operators have 3 options to have their vessels comply with these regulations:
1. Placing scrubbers on ships.
2. Switch to very low sulphur fuel oil (VLSFO - Very Low Sulphur Fuel Oil)
3. Switch to alternative fuels such as LPG or LNG
All these changes come with considerable additional expenses to the carriers, which will be offset by charging EFF to the customer. The amount of the surcharge, as well as the name, varies per carrier and per geographical area.