Transpacific container lines set low sulphur fuel surcharge


Transpacific container lines have set a low sulphur fuel surcharge from 1 January 2015 to cover increased fuel.

With the introduction of a 0.1% sulphur cap in the North American and North Europe emission control areas from the Transpacific Stablization Agreement (TSA) said lines were facing an average $365 per tonne increase in fuel cost.

The recommended charge from Asia to the US east and west coasts has been set at $67 and $53 per feu respectively. This compares to $17 and $16 per feu at present.

Per teu rates will be charged at 90% of the 40 foot container rate. The charge will be adjusted based on a 13 week price average.

“Serious questions remain as to whether an overnight surge in demand for a relatively scarce fuel will be fully met and what a ramp-up on this scale will mean initially for prices. Recent estimates suggest added annual cost per carrier in the hundreds of millions of dollars, so it is critical in the current environment that lines act quickly to mitigate such a large impact,” said Brian Conrad, TSA administrator.

Some lines have already announced individual ECA surcharge plans, including Maersk Line, Mediterranean Shipping Co (MSC) and Orient Overseas Container Line (OOCL).

Source from : Seatrade Global