Maersk Line will introduce a new Low Sulphur Surcharge (LSS) to offset additional costs incurred by switching to cleaner fuels in so-called Emission Control Areas (ECA), as required by international environmental regulation effective from 1 January 2015.
The LSS surcharge level will be trade-specific and apply equally to headhaul/backhaul and dry/reefer cargo. The surcharge level will vary based on the additional costs for low-sulphur fuels for the particular trade. Please see a complete overview of the affected trades and the surcharge levels in the table below.
Surcharge levels will be reviewed quarterly, and will be adjusted to reflect the cost for low-sulphur fuels, i.e. significant fluctuations in the price for low-sulphur fuels will be reflected in the surcharge levels.
Surcharge Level per Trade
Below table indicates the tariffs of the Low Sulphur Surcharge (LSS) for the Maersk Line trades affected by the surcharges. The surcharge will be applied equally to dry/reefer and headhaul/backhaul.
(*)Transpacific Stabilisation Agreement (TSA) is developing a low sulphur surcharge, and Maersk Line intends to follow the tariff recommended by the TSA for relevant trades.
Source and Image Credit: Maersk Line
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New legal requirement: From 1 January 2015 new legal requirements will come into force in Emission Control Areas (ECA) in North Europe (Including the Baltic Sea, North Sea and English Channel) and North America (200 nautical miles from American and Canadian shore), which will lower the maximum allowed content of sulphur in fuel burned in the ECA’s to 0.1% sulphur from todays 1.0%. Increasing fuel costs: Fuel with a sulphur content of 0.1% is significantly more expensive than fuel with 1.0% sulphur content required in ECA areas today. Based on the current price difference of USD 260/ton, the additional cost to Maersk Liner Business is estimated to USD 200 Million per year. Positive environmental impact: Sulphur emissions (SOx) from ships will be reduced by 90% in the ECA areas, which will have significant positive effects on the environment and on health in general. SOx emissions are toxic and cause respiratory implications as well as acid rain. Maersk Line fully supports the ECA regulation, subject to strict regulatory enforcement to safeguard the environmental benefits and ensure a level playing field for ship operators. |
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