CMA CGM announced that as from October 1st, 2018, the 0.50% sulphur limit will be applicable to the ports of Shanghai and Ningbo in the People’s Republic of China. For this reason the company will implement low sulphur surcharge to these areas.
As CMA CGM explained, it decided to implement low sulphur surcharge to Shanghai and Ningbo from November 15th, 2018, which is the date of loading in the origin ports, in order to ensure the sustainability its services.
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In these two ports the 0.50% sulphur limit is applicable from October 1st, while in other Chinese ports, the sulphur cap will apply from January 1st, 2019.
In addition, ahead of the global sulphur cap in 2020, CMA CGM announced that it will use LNG to power some of its future container ships (9 ships on order), resulting in a 99% reduction in sulphur emissions, while it will also order several scrubbers for its ships.
These measures represent a major additional cost estimated at an average of 160 USD / TEU. This additional cost will be taken into account through the application or adjustment of fuel surcharges on a trade-by-trade basis.
Another shipping giant, Maersk, informed that it will change the fuel adjustment surcharge ahead of the 2020 sulphur cap.
The new Bunker Adjustment Factor (BAF) aims at recovering the Maersk Line costs of compliance with the global sulphur cap which enters into force on 1 January 2020.
To allow customers to familiarise with the changed formula, Maersk Line’s BAF surcharge will be introduced on 1 January 2019.