Implementation of Mediterranean Sea Emission Control Area (ECA) Regulation

The International Maritime Organization (IMO) has extended its Emission Control Area (ECA) to also include the
Mediterranean Sea per MARPOL Annex VI Regulation 14. The extension designating the Mediterranean Sea as an
ECA zone will take effect 01 May 2025. This regulation will limit the sulphur content of fuels used by vessels
operating in the Mediterranean Sea. This is expected to incentivize the use of lower emission fuels within the EU
and result in better air quality regionally and locally.

Impact of Mediterranean Sea ECA Designation

As a result of the Mediterranean Sea designation by the IMO as an ECA zone there will be higher operating costs to
comply with the requirement to use fuels with limited sulphur content. Customers will contribute to the additional
cost of complying as they do for other forms of regulation such as IMO 2020.

How will Mediterranean Sea ECA Costs be Applied

The increased operating costs will be applied per trade through an emissions charge to cover the Mediterranean
zone. The implementation of this regulation will also be applicable to any cargo inside the Mediterranean ECA zone
on 01 May 2025.

Should you have any questions about the implementation of the Mediterranean Sea Emission Control Area
regulation, please contact your local MSC representatives in our global network of more than 675 offices.