Environmental Fuel Factor

Embassy Logistic Terms: Environmental Fuel Factor

As per January 1st 2020, the fuel on which ships operate is only allowed to contain a maximum of 0,5% sulphur. Previously the limit was 3.5%.

In the so-called Emission Control Areas (ECA zones) the even stricter regulations, which limit the sulphur content to 0.1%, are to be 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:

– Placing scrubbers on ships.

– Switch to very low sulphur fuel oil (VLSFO – Very Low Sulphur Fuel Oil)

– Switch to alternative fuels such as LPG or LNG

Carriers have announced their expenses made to comply with these rules, will be charged on by the carriers to the freight paying party. The amount of the surcharge, as well as the name, varies per carrier and per area.

Our quotes and invoices will show the term Environmental Fuel Factor (EFF).

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