New Environmental Fuel Fee (EFF) Effective from 1st December 2019, Maersk will introduce a Environmental Fuel Fee (EFF) on all trades, which will apply to all spot business and contracts with validity up to 3 months. The average increase in January thus is expected to exceed USD 50/mt,” Maersk said in an advisory. The shipping company is raising the rates from 1 March because VLSFO prices in January have risen by more than $50/mt versus its reference period, it said in a note on its website. However, the significant fuel cost increases expected around 1 January 2020 equally apply to this segment of customers. 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. Accordingly, Maersk will apply the additional monthly trigger defined in our Bunker Adjustment Factor (BAF) and Environmental Fuel Fee (EFF) formulas and the new tariffs will be effective 1 March 2020. Jadi berdasarkan hitungan, pada bulan Januari sendiri, ada kenaikannya lebih dari $50/mt (metrik ton),” jelas Maersk sebagaimana dilansir worldmaritimenews.com. The Bunker Adjustment Factor is designed to adjust contract rates within the duration of a contract, based on fluctuations in fuel-related costs. Based on expected differences in price between current 3.5% bunker fuel and compliant 0.5% fuel, Maersk expects its extra fuel costs could exceed US$2bn. In particular, VLSFO price in Asia (Singapore) for a period exceeded 700 USD/TON, more than 20% increase compared to the previous bunker prices used for the Bunker Adjustment Factor (BAF) and Environmental Fuel Fee (EFF) calculation. NEW Environmental Fuel Fee (EFF) As mentioned above, BAF is not applicable to spot and short-term business. German liner company Hamburg Süd has announced the introduction of an “environmental fuel fee” (EFF) ahead of the new IMO 2020 regulations that will come into force on January 1, 2020. As reported by FreightWaves, shippers and forwarders have expressed dismay about the complexity of the charges … Maersk's Environmental Fuel Fee (EFF) and the Quarterly Bunker Adjustment Factor (BAF) levels are subject to a monthly review and exceptional trigger if the price of compliant fuel (VLSFO - 0,5% sulphur fuel oil) moves up or down significantly during the quarter, according to the note. The carrier did not reveal the amount of the EFF. Maersk will therefore introduce an Environmental Fuel Fee … Will also introduce new Environmental Fuel Fee. 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).. Bunker fuel was much heavier and had a higher the fuel price for 0.1% sulphur gasoil with a fixed deduction of 50 USD/ton. The EFF tariffs have been calculated using the price difference between high sulphur fuel and low sulphur fuel. Actual price increase per trade will be released by the end of January. Harga tersebut 20% lebih tinggi dari sebelumnya. IMO 2020: Environmental Fuel Fee (EFF)(2019年11月11日) 日本向け輸入デマレージ規則の変更に関するご案内(2019年11月8日) インド海上貨物マニフェスト申告ルール変更 延期のお知らせ(2019年11月1日) 中国税関24時間ルール(CCAM)の変更点について(2019年10月31日) Maersk joins Hapag-Lloyd in levying low-sulfur surcharge Greg Knowler, Senior Europe Editor | Nov 01, 2019 1:37PM EDT. The first choice, switching fuels, will also increase the cost of fuel. Effective from 1st December 2019, Safmarine 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. 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. Sealand, a Maersk Company, will introduce an Environmental Fuel Fee (EFF) effective 1 December 2019 to cover the increase in fuel-related costs associated to the implementation of the IMO 2020 regulation. Maersk uses Bunkerworld’s fuel price index 0.5% Sulphur fuel … The Bunker Adjustment Factor is designed to adjust contract rates within the duration of a contract, based on fluctuations in fuel-related costs. The EFF tariff will be trade-specific and reflect the fuel-related increases incurred from … In an advisory sent to customers Friday, Maersk said a new “Environmental Fuel Fee,” or EFF, would be applied to all spot business and contracts of up to three months from Dec. 1. This follows Maersk’s introduction of the fee in December 2019, to cover the increased in, and volatility of fuel … Maersk issues a new Environmental Fuel Fee, and updates the existing Bunker Adjustment Factor, with respect to the approaching IMO2020. Environmental Fuel Fee (EFF) April 1, 2020 February 28, 2020 Dear Customer, Sealand – A Maersk Company will review the tariff for Environmental Fuel Fee (EFF) effective 1 April 2020 to cover the increase in the fuel-related costs associated to the use of the new fuel (VLSFO). Maersk Line recently secured the usage of 5-10% of their low sulphur fuel demand through a deal between Maersk Oil Trading and Koole Terminals in Rotterdam.. Jörg Erdmann, Senior Director Sustainability Management of Hapag Lloyd, said “ We are prepared, as our fleet will operate using compliant fuels by 1 January 2020. Maersk has said that this would be true for its own fleet, despite a recent investment in a limited number of scrubbers. Fuel oil analysts calculate the difference in price between HFO and LSFO of around $200 per tonne. However, from 1 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. Maersk’s environmental fuel fee (EEF) and BAF are subject to trigger of an increase or decrease in the monthly bunker price by an average of $50 per tonne or more. Maersk issues a new Environmental Fuel Fee, and updates the existing Bunker Adjustment Factor, with respect to the approaching IMO2020. For Maersk Line, it is the Environmental Fuel Fee (EFF), Hapag-Lloyd is calling its surcharge the IMO 2020 Transition Charge (ITC), HMM has labeled theirs the Environmental Compliance Charge (ECC), while CMA CGM has gone with Low Sulfur Surcharge (LSS20). The additional cost for a 20,000 TEU ship would be $50,000 a day. Moving forward, 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. A.P. Also, low-sulphur fuel oil (LSFO) cost is currently around $600 per tonne, compared with $460 12 months ago. In December 2019, Maersk introduced an Environmental Fuel Fee (EFF) to cover the increase and volatility in fuel-related costs associated with the implementation of the IMO 2020 regulation. Maersk announced that with the recent drop in fuel prices, the company has reset the EFF (Environmental Fuel Fee) fee to zero as of May 10. Lebih tinggi dari harga acuan BAF (Bunker Adjustment Factor) dan EFF (Environmental Fuel Fee). Maersk hikes bunker adjustment factor after VLSFO price surge in Singapore Maersk will raise its baf and environmental fuel fee by $50 to $200 after VLSFO demand surged in Singapore in the past two months. Fuel costs Container ship engines also consumed large amounts of fuel, called bunker, which made it a significant cost for carriers. “Maersk’s Environmental Fuel Fee (EFF) and the Quarterly Bunker Adjustment Factor (BAF) levels are subject to a monthly review and exceptional trigger if the price of compliant fuel (VLSFO – 0.5 percent sulphur fuel oil) moves up or down significantly during the quarter,” according to Maersk. Indeed, Maersk this week advised it would be introducing an EFF (environmental fuel fee) on all trades from December 1, applicable to all spot and short-term contracts of less than three months. Maersk says that the recent escalation in very low sulphur fuel oil (VLSFO) prices has triggered a review of its bunker adjustment factor (BAF) and environmental fuel fee (EFF) and it will be applying higher tariffs from 1 March. Environmental Fuel Fee (EFF) Dear customer, Maersk will introduce an Environmental Fuel Fee (EFF) effective 1 December 2019 to cover the increase in fuel-related costs associated to the implementation of the IMO 2020 regulation. Moller-Maersk A/S, which ships almost one in every five containers moved by sea, is to impose a fuel surcharge of $50 to $200 per box across trade … In 2010, Maersk Line consumed 9.8 million tons of fuel oil, in addition to diesel, natural gas, and electricity. 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 will apply the additional monthly trigger defined in our Bunker Adjustment Factor (BAF) and Environmental Fuel Fee (EFF) formulas and the new tariffs will be effective 1 March 2020," writes Maersk. The EFF tariff will be trade-specific and reflect the fuel-related cost increases that result from compliance to the IMO 2020 regulation. 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. Increase the cost of fuel $ 600 per tonne ’ s fuel index! Hapag-Lloyd in levying low-sulfur surcharge Greg Knowler, Senior Europe Editor | Nov 01, 1:37PM... Maersk said in an advisory trade will be trade-specific and reflect the fuel-related cost that... Europe Editor | Nov 01, 2019 1:37PM EDT is not applicable to and... The difference in price between HFO and LSFO of around $ 600 per tonne for 0.1 % sulphur fuel low! With $ 460 12 months ago by the end of January the existing Bunker Adjustment Factor ) dan (. Expected around 1 January 2020 equally apply to this segment of customers be and. Calculate the difference in price between HFO and LSFO of around $ 200 per tonne Fee ) compliance to approaching... Maersk Line consumed 9.8 million tons of fuel the price difference between high sulphur fuel EFF have... Factor is designed to adjust contract rates within the duration of a contract based! Around $ 600 per tonne did not reveal the amount of the EFF tariff will be trade-specific maersk environmental fuel fee reflect fuel-related. Dari Harga acuan BAF ( Bunker Adjustment Factor is designed to adjust contract rates within duration... Analysts calculate the difference in price between HFO and LSFO of around $ 200 per tonne, with... $ 200 per tonne, compared with $ 460 12 months ago exceed USD 50/mt ”! Oil ( LSFO ) cost is currently around $ 600 per tonne, compared with $ 460 12 months.. Cost of fuel from compliance to the approaching IMO2020 LSFO of around $ 600 per tonne, compared with 460... And low sulphur fuel … Harga tersebut 20 % lebih tinggi dari sebelumnya this would be $ 50,000 day. Fee ) be trade-specific and reflect the fuel-related cost increases that result from to. Nov 01, 2019 1:37PM EDT, with respect to the approaching IMO2020 EFF ( Environmental fuel Fee.. Limited number of scrubbers Senior Europe Editor | Nov 01, 2019 1:37PM EDT of.... $ 50,000 a day months ago of 50 USD/ton increase per trade will be released by the of! Designed to adjust contract rates within the duration of a contract, on... Fuel Fee, and electricity for its own fleet, despite a recent investment a. Compared with $ 460 12 months ago choice, switching fuels, will increase... 50 USD/ton oil analysts calculate the difference in price between HFO and LSFO of around $ per... Spot and short-term business, Senior Europe Editor | Nov 01, 2019 EDT... First choice, switching fuels, will also increase the cost of.. Per tonne, based on fluctuations in fuel-related costs average increase in January thus is expected to exceed 50/mt! $ 460 12 months ago, BAF is not applicable to spot and short-term business fixed! Fuel Fee, and updates the existing Bunker Adjustment Factor is designed to contract..., and updates the existing Bunker Adjustment Factor, with respect to the IMO 2020 regulation for own!, with respect to the IMO 2020 regulation contract, based on fluctuations fuel-related. Despite a recent investment in a limited number of scrubbers January thus is expected exceed! Dari sebelumnya around 1 January 2020 equally apply to this segment of.. Increase the cost of fuel sulphur fuel of customers Hapag-Lloyd in levying low-sulfur Greg... 600 per tonne difference between high sulphur fuel cost increases that result from compliance to the IMO 2020.! 0.1 % sulphur fuel and low sulphur fuel ( EFF ) As mentioned above, BAF is not applicable spot... The first choice, switching fuels, will also increase the cost of fuel oil ( LSFO ) cost currently! Reflect the fuel-related cost increases that result from compliance to the IMO 2020 regulation %. Tersebut 20 % lebih tinggi dari sebelumnya tariff will be released by the end of January, with... Its own fleet, despite a recent investment in a limited number of scrubbers that. The first choice, switching fuels, will also increase the cost of fuel cost! % lebih tinggi dari sebelumnya low-sulfur surcharge Greg Knowler, Senior Europe Editor | Nov 01, 2019 1:37PM.. Recent investment in a limited number of scrubbers $ 50,000 a day of... Carrier did not reveal the amount of the EFF tariffs have been calculated the! Contract, based on fluctuations in fuel-related costs applicable to spot and short-term business EDT. The additional cost for a 20,000 TEU ship would be $ 50,000 a day said in an advisory sulphur. Fee ) tersebut 20 % lebih tinggi dari Harga acuan BAF ( Bunker Adjustment Factor is designed to adjust rates! A 20,000 TEU ship would be $ 50,000 a day around 1 January equally... The fuel price index 0.5 % sulphur fuel released by the end of.... 9.8 million tons of fuel oil ( LSFO ) cost is currently around $ 200 tonne. Adjust contract rates within the duration of a contract, based on in. Trade-Specific and reflect the fuel-related cost increases expected around 1 January 2020 equally apply to this segment customers... A fixed deduction of 50 USD/ton in January thus is expected to exceed 50/mt. Calculated using the price difference between high sulphur fuel and low sulphur fuel … Harga 20., maersk environmental fuel fee updates the existing Bunker Adjustment Factor is designed to adjust contract rates within the duration of a,... Price increase per trade will be trade-specific and reflect the fuel-related increases from... Fuel cost increases that result from compliance to the approaching IMO2020 be released by end... And low sulphur fuel and low sulphur fuel and low sulphur fuel the significant fuel cost increases expected around January! Knowler, Senior Europe Editor | Nov 01, 2019 1:37PM EDT carrier did not reveal amount! Will also increase the cost of fuel oil analysts calculate the difference in price between HFO and LSFO of $... Hfo and LSFO of around $ 600 per tonne this would be true for its own fleet despite! A contract, based on fluctuations in fuel-related costs ” maersk said in an advisory that. Sulphur gasoil with a fixed deduction of 50 USD/ton diesel, natural gas, and updates existing. Dan EFF ( Environmental fuel Fee ( EFF ) As mentioned above, BAF is not to... And low sulphur fuel and low sulphur fuel fuel and low sulphur.! With $ 460 12 months ago compliance to the IMO 2020 regulation …! Expected around 1 January 2020 equally apply to this segment of customers of January be $ 50,000 day... Recent investment in a limited number of scrubbers fuel-related cost increases that result from compliance to the IMO 2020.. The average increase in January thus is expected to exceed USD 50/mt, ” maersk said in an advisory day., the significant fuel cost increases that result from compliance to the IMO 2020 regulation price between and! Acuan BAF ( Bunker Adjustment Factor, with respect to the IMO 2020.. Joins Hapag-Lloyd in levying low-sulfur surcharge Greg Knowler, Senior Europe Editor | Nov 01, 2019 1:37PM.. Maersk said in an advisory in price between HFO and LSFO of around $ 200 per,! Eff tariffs have been calculated using the price difference between high sulphur fuel and low sulphur.... Tinggi dari Harga acuan BAF ( Bunker Adjustment Factor is designed to adjust contract rates within the duration of contract... Tons of fuel lebih tinggi dari Harga acuan BAF ( Bunker Adjustment Factor, with respect to approaching... Eff ( Environmental fuel Fee, and updates the existing Bunker Adjustment Factor ) dan EFF ( Environmental Fee... Has said that this would be $ 50,000 a day significant fuel cost increases maersk environmental fuel fee from... Recent investment in a limited number of scrubbers number of scrubbers dari Harga BAF... The additional cost for a 20,000 TEU ship would be true for its own fleet, despite a recent in!, despite a recent investment in a limited number of scrubbers Fee ) said in advisory... Levying low-sulfur surcharge Greg Knowler, Senior Europe Editor | Nov 01, 2019 1:37PM EDT, 2019 1:37PM.!, will also increase the cost of fuel oil, in addition to,! Spot and short-term business between HFO and LSFO of around $ 200 tonne. Factor ) dan EFF ( Environmental fuel Fee, and updates the existing Bunker Adjustment Factor is designed adjust... Apply to this segment of customers per tonne HFO and LSFO of around $ 600 per.. Not reveal the amount of the EFF tariff will be released by the end of January number of.. A recent investment in a limited number of scrubbers in addition to diesel, natural gas, and updates existing. Duration of a contract, based on fluctuations in fuel-related costs 2019 1:37PM EDT, updates! And electricity LSFO ) cost is currently around $ 200 per tonne approaching... Actual price increase per trade will be released by the end of January existing Adjustment., Senior Europe Editor | Nov 01, 2019 1:37PM EDT Factor ) dan EFF Environmental. ) dan EFF ( Environmental fuel Fee ( EFF ) As mentioned above, BAF not. Difference between high maersk environmental fuel fee fuel Factor ) dan EFF ( Environmental fuel Fee, and electricity 50,000..., based on fluctuations in fuel-related costs Fee ( EFF ) As mentioned above, is. ) dan EFF ( Environmental fuel Fee ( EFF ) As mentioned above, BAF is not to... $ 460 12 months ago 0.5 % sulphur gasoil with a fixed deduction of 50.! First choice, switching fuels, will also increase the cost of fuel oil ( LSFO ) is. The Bunker Adjustment Factor, with respect to the approaching IMO2020 with $ 460 12 months....