Danish boxshipping giant Maersk Line (Maersk) is introducing a bunker adjustment factor (BAF) surcharge ahead of the the global sulphur cap that is set to enter force in 2020.
The new surcharge aims to recover expected increases in fuel expenses to comply with stricter emissions standards by the International Maritime Organisation (IMO). From 1 January 2020, the sulphur limit on marine fuels is set to fall to 0.5%, down from 3.5% currently.
The shipowner estimates that the switch to low sulphur fuels could lift its annual fuel bill by over $2 billion per year from 2020. Maersk plans to rely on compliant fuels for the majority of ships in its fleet, although it has also invested in a limited number of scrubbers for some vessels.
The BAF will be introduced on 1 January 2019, replacing the current standard bunker adjustment factor (SBF) – a quarterly adjusted surcharge that accounts for fluctuations in bunker prices.
“The 2020 sulphur cap is a game changer for the shipping industry. Maersk preparations to comply are well underway and so are our customers’ efforts to plan ahead,” Vincent Clerc, chief commercial officer of parent group A.P. Moller – Maersk A/S.
“The new BAF is a simple, fair and predictable mechanism that ensures clarity for our customers in planning their supply chains for this significant shift.”
Photo credit: Maersk Line
Published: 18 September, 2018
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