Maritime News. AP Moller – Maersk (Maersk Line) is set to introduce a new Bunker Adjustment Factor (BAF) surcharge to recover parts of its costs to be incurred from fuel-related expenditures while complying with the International Maritime Organisation’s (IMO) 2020 0.5% sulphur cap. The new BAF surcharge aims at recovering the Maersk Line costs of compliance with the global sulphur cap which enters into force on 1 January 2020. Moller - Maersk A/S. 1 4 2 minutes read. UK-based maritime and freight transport consultancy MDS Transmodal has launched a new BAF calculator tool it hopes will add some transparency to the upcoming hike in fright costs brought about by the new global 0.50% sulfur cap.. Americas Shipping and Cargo Services Sealand – A Maersk Company has reviewed its Bunker Adjustment Factor (BAF), and the new tariffs will be effective 1 October 2020. This regulation has been developed and adopted by the International Maritime Organisation (IMO), a specialised agency under the United Nations (UN). Maersk joins Hapag-Lloyd in levying low-sulfur surcharge. The Maersk BAF tariff will be reviewed on a quarterly basis and will be adjusted only when fuel prices change by more than $10/ton. FreightWaves LIVE@HOME Fall 2020; Past events. Maersk preparations to comply are well underway and so are our customers’ efforts to plan ahead,’ said Vincent Clerc, Chief Commercial Officer, A.P. The company said it expects to spend more than $2 billion to meet the sulphur cap requirements, and added that the cost for the global container shipping industry to comply could be up to $15 billion. Maersk to change Bunker Adjustment Factor for IMO 2020 sulfur regulation Maerks Line has announced a new surcharge for the bunker adjustment factor (BAF) which says it will allow customers to predict, plan and track how changes in fuel prices affect the shipping freight rate. Good forward planning from Maersk as the first carrier to begin to shed light on their plans for BAF beyond the low-Sulphur "barrier" in 2020. Until further notice, but not beyond 30-04-2020 The above rates are inclusive of Basic Freight Rate (BAS), Bunker Adjustment Factor (SBF), Bunker Adjustment Factor (BAF). Keeping up with the European Green Deal (EGD) and MARPOL convention, it aims to reduce the pollution levels globally by cutting and controlling emissions. Maersk has revealed a new surcharge to be implemented in 2019 that will help in meet new standards for the 2020 sulpher cap. Whereas today ships can use fuel with up to 3.5% sulphur content (outside Emission Control Areas), the new global sulphur cap will be 0.5%. Based on expected differences in price between current 3.5% bunker fuel and compliant 0.5% fuel, external sources estimate the additional cost for the global container shipping industry to comply could be up to USD 15 billion. Der aktuelle Standard sind Treibstoffe mit einer Schwefelobergrenze von 3,5 Prozent. Maersk has said that for next year, the proposed BAF formula will be based on the fuel price for high-sulfur fuel, IMO380, and from 2020 it will be on marine fuels that have 0.5% sulfur. 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. From 1st January 2020, the BAF tariff will be calculated based on the fuel price for 0.1% sulphur gasoil with a fixed deduction of 50 USD/ton. The BAF surcharge will be introduced on January 1, 2019, replacing Maersk Line's current Standard Bunker Adjustment Factor (SBF) surcharge. Dis. He has covered the commercial maritime and... Maersk Line said it will introduce a new Bunker Adjustment Factor (BAF) surcharge designed to recover costs of compliance with the global 0.5 percent sulphur cap set to enter into force on January 1, 2020. Moller - Maersk A/S. Container giant Maersk is set to increase its bunker adjustment factor (BAF) and environmental fuel fee (EFF) by $50-200 per forty-foot equivalent unit because of a rise in prices for very low sulfur fuel oil (VLSFO). Whereas today ships can use fuel with up to 3.5% sulphur content (outside Emission Control Areas), the new global sulphur cap will be 0.5%. New Environmental Fuel Fee (EFF) Effective from 1st December 2019, Maersk will introduce an Environmental Fuel Fee (EFF) on all trades, which will apply to all spot business and contracts with validity up to 3 months. Bunker Adjustment Factor (BAF) reviewed and the new tariffs will be effective January 1st 2021. It remains unknown whether other liner companies have raised or plan to raise their BAF surcharges. EXAMPLES only of BAF tariffs (USD/FFE) for standard (dry) containers at different fuel prices (USD/ton), for selected trades: Maersk to change fuel adjustment surcharge ahead of the 2020 sulphur cap, Panama-flagged cargo ship capsizes off Vietnam, 15 sailors missing, Saudi ports record 13.7% hike in containers, Eagle Bulk Shipping acquires modern Ultramax, Great Lakes Towing Christens New Tug Pair, Port of Corpus Christi finalizes lease, pipeline deals with Bluewater Texas crude export project, Shearwater signs $437 million refinancing of main debt facilities. Maersk joins Hapag-Lloyd in levying low-sulfur surcharge Greg Knowler, Senior Europe Editor | Nov 01, 2019 1:37PM EDT. The new surcharge considers the average fuel price in key bunkering ports around the world as well as a trade factor that reflects the average fuel consumption on a given trade lane as a result of variables like transit time, fuel efficiency and trade imbalances between head haul and backhaul legs, Maersk Line said. by Malcolm Latarche. English Edit: Daniel Logan Berg-Munch. World’s largest container shipping company Maersk Line is planning to introduce a new fuel adjustment surcharge ahead of the 2020 sulphur cap. It will be charged separately from Maersk Line’s freight rate. Moller – Maersk said it will use a new Bunker Adjustment Factor (BAF) surcharge in order to recover Maersk Line’s cost of compliance with the IMO 2020 sulphur cap. This will also be the case for the Maersk Line fleet, despite a recent investment in a limited number of scrubbers. The BAF surcharge will be charged separately from the freight rate. Introduction of the IMO 2020 and its Impact on the BAF With the coming of the IMO 2020, a new regulation has come into force from January 1, 2020. Maersk Line will only charge for the “extra cost of compliance” as the carrier introduces new IMO 2020 low-sulfur fuels in the coming months. Maersk Line has maintained that it will mostly rely on low sulphur fuel to meet the 2020 requirements, although it has recently invested in a limited number of scrubbers. Whereas today ships can use fuel with a sulphur content of 3.5 percent, the new sulphur cap will be 0.5 percent, as the regulations come into force on January 1, 2020. Maersk Hikes BAF on Rising VLSFO Prices; Maersk Hikes BAF on Rising VLSFO Prices . The BAF replaces Maersk Line’s current Standard Bunker Adjustment Factor (SBF) surcharge and consists of two key elements; the fuel price which is calculated as the average fuel price in key bunkering ports around the world, and a trade factor that reflects the average fuel consumption on a given trade lane as a result of variables like transit time, fuel efficiency and trade imbalances between head haul and backhaul legs. Maersk Line has announced that, from January 2019, it will be implementing a new Bunker Adjustment Factor (BAF) in a move designed to help clients to predict, plan and track how changes in fuel price will impact shipping freight rates with the implementation of … The BAF surcharge is designed to recover increases in fuel-related costs. 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.”. This is expected to lower global shipping’s sulphur emissions, a known source for respiratory disease and acid rain, by more than 80%. The Danish container carrier said it expects its extra fuel costs could exceed $2 billion. ”We fully support the new regulations, they will be a major benefit to the environment and peoples health. Maersk wants to change the fuel adjustment charge before the IMO sulphur 2020 regulations are set in motion. Maersk uses Bunkerworld’s fuel price index 0.5% Sulphur fuel oil (VLSFO) for the BAF and EFF calculation. It will be charged separately from Maersk Line’s freight rate. Seri Everest, the first in a series of three 98,000 cbm Very Large Ethane Carriers (VLECs) built at Samsung Heavy Industries Co., Ltd. Wind propulsion systems provider Norsepower said it has secured a contract to install five tilting rotor sails on board a…, Many of the world’s biggest lenders to shipping companies fell short of carbon-cutting targets last year in the first analysis…, Philly Shipyard held a steel cutting ceremony for the new National Security Multi-Mission Vessel (NSMV), the first of five planned purpose-built…, While work on maritime autonomy has proceeded at speed globally, a pair of U.S. companies – Metal Shark and Sea Machines…. © 1996-2020 Maritime Activity Reports, Inc. Whereas today ships can use fuel with up to 3.5% sulphur content (outside Emission Control Areas), the new global sulphur cap will be 0.5%. Splash September 21, 2018. The trade factor is calculated based on actual consumption per loaded container on the trade and the trade factor for Intra-Asia is 0.5. To become compliant shipowners will have to invest in compliant fuels, LNG or scrubber technology. Maersk preparations to comply are well underway and so are our customers’ efforts to plan ahead. A new Bunker Adjustment factor (BAF) bill will give customers the opportunity to predict, plan and witness how the changes in fuel prices effects the frequency of shipments. A partir del 1 de enero de 2020, la tarifa BAF se calculará en función del precio del combustible con 0,1% de azufre. BAF & ECA: Q4 2020 (PDF, 263 KB) BAF: Exceptional update September 2020 (PDF, 253 KB) BAF & ECA: Q3 2020 (PDF, 263 KB) Read more Import. UK-based maritime and freight transport consultancy MDS Transmodal has launched a new BAF calculator tool it hopes will add some transparency to the upcoming hike in fright costs brought about by the new global 0.50% sulfur cap.. From 1st January 2020, the BAF tariff will be calculated based on the fuel price for 0.1% sulphur gasoil with a fixed deduction of 50 USD/ton. Sealand – A Maersk Company has reviewed its Bunker Adjustment Factor (BAF), and the new tariffs will be effective January 1st 2021.. We have used Bunkerworld’s fuel price index for 0.5% Sulphur fuel oil (VLSFO) for the BAF calculation, and the average bunker price used is 323.87 USD/TON.The details on the period and reference ports used for the calculation can be found in the … New Bunker Adjustment Factor (BAF) Dear Customer, From 1st January 2020, a new regulation will come into force to reduce air pollution from ships globally. The new ‘BAF’ surcharge aims at recovering the Maersk Line costs of compliance with the global sulphur cap which enters into force on 1 January 2020. As explained, the new Bunker Adjustment Factor (BAF) surcharge aims at recovering Maersk Line’s costs of compliance with the global sulphur cap, which mandates the use of fuel with a sulphur content of 0.5% instead of 3.5 %. CMA CGM joins Maersk, Hapag-Lloyd in low-sulfur surcharge for short-term contracts JOC Maritime News Greg Knowler, Senior Europe Editor | Nov 05, 2019 10:26AM EST Keeping up with the European Green Deal (EGD) and MARPOL convention, it aims to reduce the pollution levels globally by … Pes 2020 Buz 2020 2, Olympic 2020 Tickets Usa, Olympic 2020 Tickets Usa Cosenza Calcio Maglia 2020, Kcc Adn 2020... Ram 2020 Limited, Eventos Deportivos 2020 Colombia Sauerland Stern Party 2020 Mayland Diplomat 2020. New Environmental Fuel Fee (EFF) Maersk will adjust its bunker adjustment factors (BAF) based on the price of low-sulfur fuels from Jan. 1 for long-term contracts of more than three months. It follows an announcement by Danish giant AP Moller Maersk that it is introducing a new bunker adjustment factor (BAF) surcharge on 1 January 2019, a full year ahead of the global sulphur cap on marine emissions which enters into force on 1 January 2020. The new ‘BAF’ surcharge aims at recovering the Maersk Line costs of compliance with the global sulphur cap which enters into force on 1 January 2020. Thus, the company issues a new Environmental Fuel Fee and updates the existing Bunker Adjustment Factor, reports Maersk in their website. In light of the approaching 2020 sulphur cap, which sees vessels using fuel containing up to 0.5% sulphur, Maersk’s Jacob A. Maersk will adjust its bunker adjustment factors (BAF) based on the price of low-sulfur fuels from Jan. 1 for long-term contracts of more than three months.For spot business and shorter contracts of less than three months, it is introducing on Dec. 1 an environmental fuel fee (EFF), a mechanism designed to recover the extra costs of the more expensive IMO 2020-compliant fuel. We have used Bunkerworld’s fuel price index for 0.5% Sulphur fuel oil (VLSFO) for the BAF calculation, and the average bunker price used is 313.31 USD/TON. Januar 2020 in Kraft tritt. 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