Earlier this month, Maersk Line said it would change fuel adjustment surcharge to recover presumed costs from the introduction of low-sulphur marine fuel from January 1, 2020. Maersk Line is introducing a Low Water Surcharge (LWC) applicable to ALL Cargo from North Europe to Montreal (Canada), effective 30th July 2018. Maersk Line says it will be introducing a new low sulphur surcharge (LSS) to help offset additional costs incurred by switching to cleaner fuels in Emission Control Areas (ECAs), required by the new regulation coming into effect in January 2015. Moller-Maersk A/S, which ships almost one in every five containers moved by sea, is to impose a fuel surcharge of $50 to $200 per box across trade … You can also subscribe to our daily newsletter. Surcharge levels will be reviewed quarterly, and will be adjusted to reflect the cost for low-sulphur fuels, i.e. Please log in below to view the rest of this page. To receive full access, Subscribe Today. **Learn To Do Troubleshooting And Maintenance Of Marine Electrical Systems**        Click Here To Know How, By MI News Network | In: Shipping News | Last Updated on January 16, 2017. The above rates are also subject to other applicable surcharges, including local charges and contingency charges. 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Carriers do not plan on carrying any of the costs of complying with the IMO 2020 low-sulfur fuel regulations, and will levy a surcharge on spot rates and shorter contracts. Share Facebook . To offset the additional cost incurred by switching to cleaner fuels in Emission Control Areas, as required by the ECA regulation, Maersk Line will introduce a new Low Sulphur Surcharge (LSS). The low sulphur surcharge will certainly be introduced from 2019.Q4 for the additional cost recovery. See the price of the surcharges … 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. Maersk Line has indicated a ‘high acceptance’ by customers in their contracts, accounting for around half of the Danish shipping giant’s volumes. 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. ‘Global rules allow lines to meet air quality standards by fitting scrubbers to clean up exhaust emissions, rather than buying more expensive low-sulphur fuel.’ GSF says it has reacted with ‘suspicion’ to the announcement by Maersk Line of new fuel surcharge arrangements from 1 January 2019 to recover presumed costs from the introduction of low-sulphur marine fuel from 1 January 2020. ** Transpacific Stabilisation Agreement (TSA) has developed a low sulphur surcharge, and Maersk Line will follow the tariff recommended by the TSA for relevant trades. Dive Brief: Drewry Maritime Consultants on Tuesday launched its "Cost Impact Calculator," a service to help shippers understand the costs their supply chains may incur as the shipping industry transitions to low-sulfur fuel.In the past months, Maersk Line, CMA CGM, Hapag-Lloyd and OOCL have each announced new surcharge mechanisms for 2019, designed to cover the costs of compliance for … Charges,Surcharges. Maersk Line has announced that from 1 January 2015, it will implement a surcharge on cargo with an origin or destination in the new low-sulphur zones. TSA differentiate per trade direction. So it is no surprise that this regulation would bring with it Low Sulfur Surcharges from carriers. 1 December 2016. 0. 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. … Below table indicates the tariffs of the Low Sulphur Surcharge (LSS) for the Maersk Line trades affected by the surcharges. Positive environmental impact: Sulphur emissions (SOx) from ships will be reduced by 90% in the ECA areas, which will have significant positive effects on the environment and on health in general. 0. A Maersk executive told Reuters it is investing in scrubbers for some ships. Maersk. Twitter . admin . The price of low-sulfur fuel has risen sharply in January, with the volatility exceeding expectations. Maersk Line is introducing a Winter Surcharge Fee (WSC) applicable to all import cargo into Saint Petersburg and Ust-Luga due to increase in operational costs during winter season, effective from 1 st December, 2018 until further notice The surcharge amount is: … To cope with the coming IMO 2020 low sulphur regulation, a mechanism for calculating the “new BAF” has been designed to appropriately recover the significant cost from 2019.Q4. Facebook. Yang Ming is the first container shipping line to announce a new Bunker charge for IMO2020, applicable to ALL shippers from Asia to Europe, effective from 1st December 2019 @ USD 125 per teu. Maersk Line is currently calculating the costs of the expensive low sulphur fuel ships will soon have to use in Northern Europe. But there seems to be a lot of uncertainty regarding the price customers will have to pay. The surcharge level will vary based on the additional costs for low-sulphur fuels for the particular trade. Based on an early indication of a $500 per metric ton price for low-sulfur fuel oil, Maersk’s surcharge formula would tack on an extra $488 per forty-foot equivalent unit (feu) shipped from Asia to the U.S. West Coast. Maersk Line preparing sulphur surcharge from 2015. Maersk, Hapag-Lloyd, CMA CGM and MSC have announced separate IMO 2020 surcharges. Transition to 2020 Low Sulphur Fuel Surcharge (LSS) From January 2020 all ships and vessels operating anywhere in the world will be required to reduce their sulphur emissions. 21 January 2020. Yes, switching fuels to go from 3.5% sulfur content to 0.5% does cost more money for carriers. Of course, the surcharges announced by different carriers vary in amounts and the dates they go into effect. But the company also plans to develop a low-sulfur fueling facility in Europe. If you continue to use this site we will assume that you are happy with it. Maersk Line fully supports the ECA regulation, subject to strict regulatory enforcement to safeguard the environmental benefits and ensure a level playing field for ship operators. Unquote. June 2, 2015 . Maersk has said it faces a nearly $2 billion increase in fuel costs associated with the switch to the 0.5% emissions cap. The company says that the surcharge levels will be reviewed quarterly, and will be adjusted to reflect significant fluctuations in the price of low-sulphur fuel. A.P. The current fuel sulfur cap there is 3.5%. July 13, 2018. Greg Knowler, Senior Europe Editor | Nov 01, 2019 1:37PM EDT. Tariffs of the Low Sulphur fuel ships will soon have to use in Europe... | Jan 21, 2020 1:35PM EST amounts and the dates they go into.! The Maersk Line is currently calculating the costs of the affected trades and the dates they go into.! 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