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.
The BAF replaces Maersk Line’s current Standard Bunker Adjustment Factor (SBF) surcharge and includes two key elements:
- The fuel price which is calculated as the average fuel price in key bunkering ports around the world;
- 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.
These two factors could give customers full predictability of their costs at any given fuel price both before and after 2020.
To allow customers to familiarise with the changed formula, Maersk Line’s BAF surcharge will be introduced on 1 January 2019.
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In addition, as the regulation is expected to increase uncertainty to fuel costs for shipping, the BAF surcharge aims to recover increases in fuel related costs. It will be charged separately from Maersk Line’s freight rate.
As Maersk said, by 2020, more than 90% of the global vessel fleet will be relying on compliant fuels, with Maersk’s ships being no exception, despite a recent investment in a limited number of scrubbers.
Finally, the company noted that external sources estimate the additional cost for the global container shipping industry to comply could be up to USD 15 billion, with Maersk expecting its extra fuel costs to be over USD 2 billion.
Vincent Clerc, Chief Commercial Officer, Moller – Maersk stated:
Maersk preparations to comply are well underway and so are our customers’ efforts to plan ahead. 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.
