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MSC introduces ‘transparent’ bunker recovery charge for 2019

04 Dec 2018

International shipping firm Mediterranean Shipping Company S.A. (MSC) in early December says it is introducing new bunker charges as of 1 January 2019 in preparation for IMO 2020.

“We believe that it is essential to segregate transparently the burden of fuel costs, in order for this cost to be passed on visibly throughout the supply chain,” it notes.

“Passing on that cost is also vital to ensure the sustainable future of the container shipping industry.”

MSC estimates it expects to incur cost in excess of two billion dollars (USD) per year due to various changes to its fleet and its fuel supply.

“After considerable analysis of operating costs and related market factors, MSC has established a new price mechanism – the BRC (Bunker Recovery Charge) – which will be transparent to respective trades. It will reflect the true additional cost that MSC will incur as a result of the regulatory changes we all support in order to protect the environment,” it explains.

“The BRC replaces the current Bunker Contribution (BUC), Fuel Adjustment Factor (FAD) and Emergency Fuel Surcharge (EFS), and largely absorbs other pre-existing fuel-related charges. Charges specifically related to coastal Emission Control Areas (ECAs) will remain in place.”

The calculation of the BRC can be access from this link.

Photo credit: Mediterranean Shipping Company
Published: 4 December, 2018

 

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