The low sulphur surcharge will certainly be introduced from 2019.Q4 for the additional cost recovery. 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 … Share Facebook . The current fuel sulfur cap there is 3.5%. To receive full access, Subscribe Today. 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.. SOx emissions are toxic and cause respiratory implications as well as acid rain. The tariffs for the new Low Sulphur Surcharge (LSS) can be found below. 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. If you continue to use this site we will assume that you are happy with it. 0. But the company also plans to develop a low-sulfur fueling facility in Europe. 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 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. A.P. The surcharge amount is: LWC: USD 100 / 150 / 150 for 20’/40’/45’. The surcharge level will vary based on the additional costs for low-sulphur fuels for the particular trade. So it is no surprise that this regulation would bring with it Low Sulfur Surcharges from carriers. After thirty days, you will receive 3 pieces of content and after sixty days you will receive 1 piece of content. 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. Required fields are marked *, Maersk Line To Introduce New Low Sulphur Surcharge In Response To Environmental Regulations. 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. 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. But there seems to be a lot of uncertainty regarding the price customers will have to pay. 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. Maersk. 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.. 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. Surcharge levels will be reviewed quarterly, and will be adjusted to reflect the cost for low-sulphur fuels, i.e. June 2, 2015 . Greg Knowler, Senior Europe Editor | Nov 01, 2019 1:37PM EDT. See the price of the surcharges … 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. The surcharge will be applied equally to dry/reefer and headhaul/backhaul. 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. Please log in below to view the rest of this page. Below table indicates the tariffs of the Low Sulphur Surcharge (LSS) for the Maersk Line trades affected by the surcharges. 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. 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. Of course, the surcharges announced by different carriers vary in amounts and the dates they go into effect. MAERSK LINE’S LOW SULPHUR SURCHARGE (LSS). 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 … In order to meet the 2020 target, many shipping lines are implementing changes to their vessels now. 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. significant fluctuations in the price for low-sulphur fuels will be reflected in the surcharge levels. Maersk, Hapag-Lloyd, CMA CGM and MSC have announced separate IMO 2020 surcharges. 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. TSA differentiate per trade direction. Twitter . 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 is currently calculating the costs of the expensive low sulphur fuel ships will soon have to use in Northern Europe. You can also subscribe to our daily newsletter. Your email address will not be published. A Maersk executive told Reuters it is investing in scrubbers for some ships. 29. Maersk Line has indicated a ‘high acceptance’ by customers in their contracts, accounting for around half of the Danish shipping giant’s volumes. admin . Map of Emission Control Areas in Europe and North America. The container businesses of A.P. 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). **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. 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. Maersk announces sulfur surcharge on short-term contracts. 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. April 27, 2018. Please see a complete overview of the affected trades and the surcharge levels in the table below. 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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). Fuel cost would account for an even larger portion of … Facebook. Maritime News. The LSS surcharge level will be trade-specific and apply equally to headhaul/backhaul and dry/reefer cargo. 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. Charges,Surcharges. These low-sulphur zones are being introduced by the European Union (EU) in the North Sea, Baltic Sea and English Channel as well as one being implemented on both coasts of North America. 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 Line preparing sulphur surcharge from 2015. 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: … Greg Knowler, Senior Europe Editor | Jan 21, 2020 1:35PM EST. The price of low-sulfur fuel has risen sharply in January, with the volatility exceeding expectations. ** Transpacific Stabilisation Agreement (TSA) has developed a low sulphur surcharge, and Maersk Line will follow the tariff recommended by the TSA for relevant trades. We use cookies to ensure that we give you the best experience on our website. The above rates are also subject to other applicable surcharges, including local charges and contingency charges. 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 … Unquote. 0. 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). Your email address will not be published. Early rise in low-sulfur fuel price triggers Maersk increase. Register with JOC.com and receive 5 free pieces of content for the first thirty days. 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. … 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. 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. 21 January 2020. 1 December 2016. Maersk Line is introducing a Low Water Surcharge (LWC) applicable to ALL Cargo from North Europe to Montreal (Canada), effective 30th July 2018. 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. 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. July 13, 2018. Dear Valued Customer, Please find below the updated tariffs for our Low Sulphur Surcharge (LSS), which will be effective 1st January 2017.. 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 … 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. 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. Yes, switching fuels to go from 3.5% sulfur content to 0.5% does cost more money for carriers. That would raise the price of shipping a container nearly 24 percent over the current spot price of $2.051 per feu. Maersk joins Hapag-Lloyd in levying low-sulfur surcharge. 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. (*)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. The surcharge will be effective from 1 January 2015 and affect all trades with origin and/or destination in Emission Control Areas. ‘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. 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.