GlossaryEN1 min readUpdated: Jul 24, 2026

Low Sulphur Surcharge

The Low Sulphur Surcharge (LSS), also known as Low Sulphur Fuel Surcharge, is a levy through which a shipping line passes the extra cost of low-sulphur marine fuels on to its customers.

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Last updated: 24 July 2026

Source: https://www.shippingandfreightresource.com/what-is-low-sulphur-surcharge-and-why-is-it-applicable/

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Incoterms 2020 Simulator: Who bears costs & risk?

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Definition & Explanation

The Low Sulphur Surcharge (LSS), also known as Low Sulphur Fuel Surcharge, is a levy through which a shipping line passes the extra cost of low-sulphur marine fuels on to its customers. The background is the IMO 2020 regulation in force since 1 January 2020: it cut the permissible sulphur limit in marine fuels worldwide from 3.5 to 0.5 percent; in Emission Control Areas (ECA) such as the North Sea and Baltic Sea an even stricter limit of 0.1 percent applies. Compliant fuels such as VLSFO or Marine Gas Oil are considerably more expensive than conventional heavy fuel oil – this difference is what the LSS covers. Depending on the carrier, the surcharge appears on the freight invoice under names like LSS, LSF, Green Fuel Surcharge or ECA Surcharge. Forwarders should check in quotations whether the surcharge is included in the rate or shown separately. Not to be confused with the Bunker Adjustment Factor (BAF), which offsets general fluctuations in bunker prices – the LSS specifically compensates for the extra cost of sulphur regulations.