With the official implementation of the 2020 sulphur cap, the Global Shippers Forum (GSF) launched advice, assisting importers and exports who will have to deal with the demands for surcharges from shipping lines seeking to cover their costs of compliance.
The Forum issued a “Top 10” list on what industry should keep in mind when negotiating for 2020 contracts. Specifically:
- It’s a discretionary charge not a mandatory tax
- Buying (more expensive) Low Sulphur Fuel is not the only option
- Don’t lock in an early rate or consolidate any sulphur surcharges into BAFs
- “So how did you work that out?” Carriers should know to the nearest tonne and tens of dollars what fuel they have bought and used, given its costs.
- Low-sulphur fuel is nothing new
- Watch for the scrubber in low-sulphur clothing
- Consider joining a benchmarking service
- If it looks like an arbitrary figure and feels like an arbitrary figure
- Don’t fall for the sympathy card
- Sulphur surcharges stink!
Meanwhile, James Hookham, GSF’s Secretary General, commented
Shippers should be demanding clear and consistent explanations of any surcharges demanded and GSF’s ‘Top Ten Tips for Sulphur-Surcharged Shippers’ reminds our members of the ground rules and to scrutinise carefully any surcharge demands made during contract negotiations.
He added that the new environmental rules are a challenge for the already troubled containership industry, given that the sector assumes that the costs of cleaning up its environmental act can simply be passed onto its Customers (shippers) in the form of surcharges.
Concluding, Hookham added that shippers should move towards a more mature pricing regime with confidential contracting and all-inclusive charges becoming the ‘new normal’.
To learn more on the “Top 10” list, click herebelow
