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SAFETY4SEA

ANSAC welcomes IMO’s 2020 fuel surcharge

by The Editorial Team
September 18, 2019
in Fuels
imo 2020

Credit: Shutterstock / C Z

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Following the rapidly approaching IMO’s 2020 sulphur cap regulation, the American Natural Soda Ash Corp. (ANSAC) announced that they will immediately implement a vessel fuel surcharge to all of its soda ash vessel shipments to be sure of its fuel compliance.

The 2020 sulphur cap has been a hot topic in the shipping sector, as some have already begun installing scrubbers and other opt for additional compliant fuels. As Sören Scheid stated, there will be no easy way back after the ban to carry HFO onboard enters into force on 1 March 2020.

ANSAC’s President, Christopher B. Douville, commented that although the regulation is four months away, the speculative premium on forward pricing for 0.5% low sulphur fuel versus today’s 3.5% and the unknown actions the shipowners will take in order to cope with these changes, have limited the plausible fuel hedging options available in calendar year 2020.

As a result, the company will adopt IMO’s fuel surcharge to ensure their compliance and shipment reliability.

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Specifically, ANSAC will implement a vessel fuel surcharge to all the transactions that include vessel freight if the monthly average price for 0.5% low sulphur fuel in Singapore exceeds a certain U.S. dollar threshold per metric ton.

However, some shipowners and countries are against the new regulation or merely support it. For instance, India announced that they may not comply with the regulation, in its domestic waters, following Indonesia’s first decision of not complying, who later on stated that they will fully comply with IMO’s sulphur cap.

ANSAC welcomes IMO’s 2020 fuel surchargeANSAC welcomes IMO’s 2020 fuel surcharge
ANSAC welcomes IMO’s 2020 fuel surchargeANSAC welcomes IMO’s 2020 fuel surcharge
Tags: 2020 sulphur capIMO 2020
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