Please enable Cookies and reload the page. Whereas today ships can use fuel with […] The company’s senior management team has told analysts that slow steaming was more likely than accelerated scrapping to improve fuel efficiency. Your IP: 209.59.187.204 The new BAF surcharge aims at recovering the Maersk Line costs of compliance with the global sulfur cap which enters into force on January 1, 2020. As reported by The regulation will take effect on January 1, 2020. World’s largest container shipping company Maersk Line is planning to introduce a new fuel adjustment surcharge ahead of the 2020 sulphur cap. CMA CGM has put a price to its low-sulfur surcharge per container moving on the North Europe-Asia trade. As per this decision, MARPOL Annex VI has been revised, lowering the current global limit for sulphur content of marine fuels from 3.50% to 0.50% as from the 1st of January 2020.. The regulation will bring increases and uncertainty for fuel costs in maritime transport. Dive Brief: ONE will implement a bunker surcharge on all new contracts beginning Jan. 1, 2019, "to be valid till further notice," to help offset the costs of preparing for the International Maritime Organization (IMO) 2020 sulfur regulations change, the shipping line said in an advisory. “Scrubbers cover around 30% of fuel consumption, while management expressed limited interest in [liquefied natural gas]; instead it would be looking at alternatives to further reduce carbon footprint longer-term.”. “Slow steaming is seen as more likely than accelerated scrapping to improve fuel efficiency. If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. Maersk's management “is encouraged by high acceptance of bunker surcharges in contracts and recent market discipline and talk about mitigating higher fuel costs under IMO 2020 in the spot market”, according to David Kerstens, equity analyst at logistics investment consultancy Jefferies. Maersk customers absorb IMO 2020 bunker surcharges, 2021: Europe’s year for shipping’s regulations. Meanwhile, Maersk has invested to reduce the impact of higher fuel bills by signing an agreement to produce IMO 2020-compliant bunker fuel. • IMO 2020: CMA CGM gives low-sulfur surcharge … As Maersk has communicated during the course of 2019, the switch of marine fuel to comply with the IMO Low Sulphur Cap regulation effective 1 January 2020, would bring substantial cost increase for ocean shipping. Hapag-Lloyd will raise its low-sulfur surcharge for exports from China and Hong Kong on March 2 for 30 days following “strong price fluctuations” in the fuel price since the imposition of the IMO 2020 mandate on Jan. 1, the German container carrier said in a statement earlier this week. From 1st January 2020, a new regulation will come into force to reduce air pollution from ships globally. ... the fuel of choice for IMO 2020 compliance -- is … Low Sulphur Surcharge - IMO 2020 (LSS) as of December 1 st, 2019 For long-term contracts (more than 3 months validity) BAF Formula based on VLSFO 0.50% as of January 1 , 2020 7. Container lines implemented their IMO 2020 surcharges on Dec. 1. It further says that it had already informed customers during the course of 2019 that the new IMO 2020 regulation would bring … The new BAF surcharge aims at recovering the Maersk Line costs of compliance with the global sulphur cap which enters into force on 1 January 2020. Maersk IMO sulfur regulation: The new surcharge of the Bunker Adjustment Factor (BAF) aims to recover the compliance costs of Maersk Line with the global sulfur limit, which requires the use of fuel with a sulfur content of 0.5% instead of 3,5%. Find the latest information now! Danish shipping company Maersk Line needs to reconsider its plan to introduce new fuel surcharge arrangements from January 1, 2019, the Global Shippers Forum (GSF) believes. The EFF is applicable to Maersk Spot and all contracts with validity up to three months. TweetShareSharePin The new BAF surcharge aims at recovering the Maersk Line costs of compliance with the global sulphur cap which enters into force on 1 January 2020. The Global Shippers Forum reacted with “suspicion” at the time, arguing that the surcharge “lacks transparency; no data is available to let customers work out how the charge has been calculated”. The high acceptance level among customers for the adjusted surcharge comes after a rough reception from one customer lobby group when Maersk made the announcement in September last year. Carrier profits to surpass H1 2020, but 2021 outlook uncertain: analysts UK shippers forced to soaring spot market amid port chaos Shippers brace for wave of carrier charges as service suffers Ongoing unit cost reductions of 1%-2% are targeted, while there is limited room for M&A and cash returns for now.”. Maersk’s chief executive and chief financial officer indicated that they are encouraged by recent container market discipline and talk about potential bunker surcharges in the spot market. At the beginning of 2019, it introduced a new bunker adjustment factor surcharge to help defray the associated costs of meeting the low-sulphur fuel cap, with the total industry-wide bill for preparations put at $15bn. Maersk has previously estimated a $2bn rise in its annual fuel costs due to the International Maritime Organization’s 2020 low-sulphur fuel cap of 0.5% that enters force in January. Another way to prevent getting this page in the future is to use Privacy Pass. For Maersk Line, it is the Environmental Fuel Fee (EFF), Hapag-Lloyd is calling its surcharge the IMO 2020 Transition Charge (ITC), HMM has labeled theirs the Environmental Compliance Charge (ECC), while CMA CGM has gone with Low Sulfur Surcharge (LSS20). Low sulphur fuel is the best way for the shipping industry to meet the International Maritime Organization’s (IMO) sulphur cap, set to enter into force in 2020, CEO of industry major A.P.Moller Maersk, Soren Skou, said at Singapore Maritime Week 2018. Maersk is revising Terminal Handling Service – Origin/Terminal Handling Service - Destination (OHC/DHC) for all cargo containers for World to/from Mauritius effective 01st January 2021 for Non-regulated countries and effective 11th January for Regulated countries. This regulation has been developed and adopted by the International Maritime Organisation (IMO), a specialised agency under the United Nations (UN). Mr Kerstens said: “We estimated earlier bunker costs could increase by 15%-20% under IMO 2020. Despite initial resistance from shipper groups, liner customers are coming to accept they will foot the bill for low-sulphur fuel. Please log in below to view the rest of this page. Maersk Line will only charge for the "extra cost of compliance" as the carrier introduces new IMO 2020 low-sulfur fuels in the coming months. Maersk Jacks Up Fuel Surcharge as Shipping’s Biggest Expense Spirals By . As explained, the new Bunker Adjustment Factor (BAF) surcharge aims at recovering Maersk Line’s costs of compliance with the global sulphur cap, which mandates the use of fuel with a sulphur content of 0.5% instead of 3.5 %. Whereas today ships can use fuel with up to 3.5% sulphur content (outside Emission Control Areas), the new global sulphur cap will be 0.5%. Maersk has previously estimated a $2bn rise in its annual fuel costs due to the International Maritime Organization’s 2020 low-sulphur fuel cap of 0.5% that enters force in January. Maersk will adjust its bunker adjustment factors (BAF) based on the price of low-sulfur fuels from Jan. 1 for long-term contracts of more than three months.For spot business and shorter contracts of less than three months, it is introducing on Dec. 1 an environmental fuel fee (EFF), a mechanism designed to recover the extra costs of the more expensive IMO 2020-compliant fuel. 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