Maersk joins Hapag-Lloyd in levying low-sulfur surcharge. 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. 29. Your email address will not be published. Maersk Line has indicated a ‘high acceptance’ by customers in their contracts, accounting for around half of the Danish shipping giant’s volumes. The above rates are also subject to other applicable surcharges, including local charges and contingency charges. The surcharge amount is: LWC: USD 100 / 150 / 150 for 20’/40’/45’. The surcharge will be applied equally to dry/reefer and headhaul/backhaul. Maersk Line will introduce a new Low Sulphur Surcharge (LSS) to offset additional costs incurred by switching to cleaner fuels in so-called Emission Control Areas (ECA), as required by international environmental regulation effective from 1 January 2015. CMA CGM has introduced a Low Sulphur Surcharge (LSS20) effective December 1st, 2019 to cover the increase in fuel-related costs associated with the implementation of the IMO 2020 regulation. Maersk has said it faces a nearly $2 billion increase in fuel costs associated with the switch to the 0.5% emissions cap. The LSS surcharge level will be trade-specific and apply equally to headhaul/backhaul and dry/reefer cargo. (*)Transpacific Stabilisation Agreement (TSA) is developing a low sulphur surcharge, and Maersk Line intends to follow the tariff recommended by the TSA for relevant trades. Dear Valued Customer, Please find below the updated tariffs for our Low Sulphur Surcharge (LSS), which will be effective 1st January 2017.. Maersk. TSA differentiate per trade direction. 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. 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. A.P. … April 27, 2018. So it is no surprise that this regulation would bring with it Low Sulfur Surcharges from carriers. In order to meet the 2020 target, many shipping lines are implementing changes to their vessels now. Fuel cost would account for an even larger portion of … The surcharge will be effective from 1 January 2015 and affect all trades with origin and/or destination in Emission Control Areas. Please see a complete overview of the affected trades and the surcharge levels in the table below. The tariffs for the new Low Sulphur Surcharge (LSS) can be found below. Maersk Line will introduce a new Low Sulphur Surcharge (LSS) to offset additional costs incurred by switching to cleaner fuels in so-called Emission Control Areas (ECA), as required by international environmental regulation effective from 1 January 2015. 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 … Maersk has estimated that the added cost of burning .5% low sulphur fuel will be in the range of $2 billion annually, which it intends to pass to customers in the form of a bunker surcharge. 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). Please log in below to view the rest of this page. The container businesses of A.P. The surcharge level will vary based on the additional costs for low-sulphur fuels for the particular trade. 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. admin . Twitter . 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. 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. Maersk just informed its customers of the size of its sulfur surcharges on contracts lasting up to three months, after the company calculated the difference between high- and low-sulfur fuel. Required fields are marked *, Maersk Line To Introduce New Low Sulphur Surcharge In Response To Environmental Regulations. For example, Maersk predictions show the current cost of low-sulphur fuel at $364 per metric ton higher than standard high-sulfur marine fuel by the start of the IMO rule. 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. ** Transpacific Stabilisation Agreement (TSA) has developed a low sulphur surcharge, and Maersk Line will follow the tariff recommended by the TSA for relevant trades. **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 low sulphur surcharge will certainly be introduced from 2019.Q4 for the additional cost recovery. Charges,Surcharges. Sealand - A Maersk Company www.sealandmaersk.com Oct. 26th, 2018 Low Sulphur Fuel Surcharge (LSS) Charge Notice Dear Valued Customers, Please be advised that SEALAND ASIA will introduce Low Sulphur Fuel Surcharge (LLS) from/to Shanghai/Ningbo ports (including Yangtze River inland ports via Shanghai/Ningbo). The current fuel sulfur cap there is 3.5%. 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: … A Maersk executive told Reuters it is investing in scrubbers for some ships. 0. Maersk Line is currently calculating the costs of the expensive low sulphur fuel ships will soon have to use in Northern Europe. 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 … Please note that cargo with origin or destination in the Baltic zone (defined as Finland, Russia, Estonia, Latvia, Lithuania and East Coast of Sweden) will be charged an additional 70 USD per FFE. 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, Hapag-Lloyd, CMA CGM and MSC have announced separate IMO 2020 surcharges. Although this the term used, different shipping lines are already calling it different names – Low Sulphur Surcharge ( LSS ), Green Fuel Surcharge ( GFS ), Emission Control Area Surcharge ( ECA ), Low Sulphur Fuel Surcharge ( LSF ) with … However, many major carriers have released projected costs for shippers, based on average fuel consumption per day, fuel type and fuel prices at sea and total containers carried. ‘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. MAERSK LINE’S LOW SULPHUR SURCHARGE (LSS). We believe that a separate surcharge will provide better transparency to our customers on the additional costs arising from the new environmental requirements than if we had integrated the costs into our existing bunker surcharge (SBF), as previously communicated. The above surcharge acronyms mean: OF (Ocean Freight), OHC (Origin Terminal Handling Charge), DHC (Destination Terminal Handling Charge), ERS (Emergency Risk Surcharge), BAF (Bunker Adjustment Factor), LSS (Low Sulphur Surcharge) and PSS (Peak Season Surcharge). Facebook. If you continue to use this site we will assume that you are happy with it. We use cookies to ensure that we give you the best experience on our website. Maersk Line is introducing a Low Water Surcharge (LWC) applicable to ALL Cargo from North Europe to Montreal (Canada), effective 30th July 2018. 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. Map of Emission Control Areas in Europe and North America. Maersk announces sulfur surcharge on short-term contracts. Greg Knowler, Senior Europe Editor | Jan 21, 2020 1:35PM EST. Greg Knowler, Senior Europe Editor | Nov 01, 2019 1:37PM EDT. New legal requirement: From 1 January 2015 new legal requirements will come into force in Emission Control Areas (ECA) in North Europe (Including the Baltic Sea, North Sea and English Channel) and North America (200 nautical miles from American and Canadian shore), which will lower the maximum allowed content of sulphur in fuel burned in the ECA’s to 0.1% sulphur from todays 1.0%. 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. 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. But the company also plans to develop a low-sulfur fueling facility in Europe. But there seems to be a lot of uncertainty regarding the price customers will have to pay. Maritime News. Unquote. 0. Register with JOC.com and receive 5 free pieces of content for the first thirty days. The tariffs for the new Low Sulphur Surcharge (LSS) can be found below. Low Sulphur Surcharge is a surcharge levied by the lines to cover the costs associated with using low sulphur fuel in line with the IMO 2020 Sulphur Cap regulation.. 21 January 2020. 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 … Of course, the surcharges announced by different carriers vary in amounts and the dates they go into effect. 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. Increasing fuel costs: Fuel with a sulphur content of 0.1% is significantly more expensive than fuel with 1.0% sulphur content required in ECA areas today. 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. Yes, switching fuels to go from 3.5% sulfur content to 0.5% does cost more money for carriers. Surcharge levels will be reviewed quarterly, and will be adjusted to reflect the cost for low-sulphur fuels, i.e. Early rise in low-sulfur fuel price triggers Maersk increase. That would raise the price of shipping a container nearly 24 percent over the current spot price of $2.051 per feu. June 2, 2015 . July 13, 2018. See the price of the surcharges … Sealand - A Maersk Company www.sealandmaersk.com 3 December 2018 Low Sulphur Fuel Surcharge (LSS) Notice Dear Valued Customers, Please be advised that SEALAND ASIA will introduce Low Sulphur Fuel Surcharge (LSS) from/to Hong Kong. You can also subscribe to our daily newsletter. To receive full access, Subscribe Today. Share Facebook . After thirty days, you will receive 3 pieces of content and after sixty days you will receive 1 piece of content. Møller-Maersk (Maersk) will spend an extra $200 million a year to adapt to the new sulfur limits in European Emissions Control Areas (ECAs), industry news site ShippingWatch reports.. 1 December 2016. significant fluctuations in the price for low-sulphur fuels will be reflected in the surcharge levels. Your email address will not be published. Based on the current price difference of USD 260/ton, the additional cost to Maersk Liner Business is estimated to USD 200 Million per year. 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. 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