Low Sulphur Surcharge (LSS) / IMO 2020 Surcharge
Introduced when IMO 2020 (effective January 1, 2020) mandated that all ocean vessels use fuel with maximum 0.5% sulphur content (down from 3.5%). Carriers had to switch to low-sulphur fuel (VLSFO) or install scrubbers, both significantly increasing fuel costs. LSS compensates for this mandatory compliance cost.
LSS adds $25–$150/20ft or $50–$300/40ft depending on VLSFO price and carrier. As fuel prices normalize, LSS has decreased from 2020 peaks. LCL: charged per CBM at carrier's discretion.
Who Pays?
Set by carrier or port authority — not negotiable.
LSS is tied to a regulatory requirement so it is non-negotiable. However, the surcharge amount reflects market VLSFO prices and fluctuates accordingly.
Adjustment Frequency
Current rate reviewed: Monthly review
Chargeable Unit
Formula / Calculation
LSS = Additional Low-Sulphur Fuel Cost per Container (carrier calculated)Frequently Asked Questions
Does LSS apply to ships with scrubbers?
Is LSS the same as BAF?
Related Articles
Understanding BAF: The Bunker Adjustment Factor Explained
LSS Low Sulfur Surcharge Explained — IMO 2020's Hidden Cost
LSS vs EBS vs BAF vs FAF — All Fuel Surcharges Compared
Often Appears Together With
These charges frequently appear on the same freight invoice as LSS:
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