The Worldscale Association has announced bunker prices and fixed rate differentials for 2015, which will help deal with the issue of higher freight costs resulting from changes to Emission Control Area regulations.
From January, all ships within ECA zones — Baltic Sea, North Sea, and waters off North America — must use fuel with a maximum sulfur content of 0.1%, down from 1.0% now.
The association said Baltic Sea and North Sea ECA and European in-port bunker low sulfur allowances will be $920.75/mt. The allowances in North American and Caribbean ECA zones will be $1,082.02/mt.
The bunker price that will be used for calculating other 2015 Worldscale flat rates is $614.81/mt — the average worldwide price for fuel oil (380 CST) during the period October 1, 2013, to September 30, 2014 as assessed by LQM Petroleum Services Inc.
The higher allowances in ECA zones reflect the cost of 0.1% sulfur fuel.
The association said it will use fixed differentials to calculate additional freight due in connection with voyages involving ECA areas.
In 2015, the fixed differentials will be based on the use of 0.1% sulfur fuels. The differential in the Baltic and North Sea ECA zone will be $48.35/mile of the voyage steamed within the zone.
The International Maritime Organization (IMO) says the combined Baltic and North Sea ECA seaward limits as: The North Sea southwards of latitude 62 degrees N and eastwards of longitude 4 degrees W and the English Channel and its approaches eastwards of longitude 5 degrees W and northwards of latitude 48 degrees 30 minutes N.
In the North American and Caribbean ECA zones, the fixed differential will be $65.31/mile of the voyage steamed within the zone.
“The area of the North American ECA includes waters adjacent to the Pacific coast, the Atlantic/Gulf coast and the eight main Hawaiian Islands. It extends up to 200 nautical miles from coasts of the United States, Canada and the French territories, except that it does not extend into marine areas subject to the sovereignty or jurisdiction of other independent sovereign states,” the association said.
“The area of the Caribbean ECA includes waters adjacent to coasts of the Commonwealth of Puerto Rico and the U.S. Virgin Islands, up to roughly 50 nautical miles from the territorial sea baselines of the included islands. The ECA is bounded such that it does not extend into marine areas subject to the sovereignty, sovereign rights, or jurisdiction of any state other than the United States.”
Fixed rate differentials are differentials to be included as part of the freight payment as a fixed amount in respect of costs incurred by owners.
Worldscale rates are calculated on the assumption of a round voyage mileage. It will be the responsibility of the contracting parties to agree the distance steamed within an ECA.