SHIPPERS moving cargo from Asia to the US can expect bunker charges of US$67 per FEU for east coast and $53/FEU for the west coast versus today's charge of $17 and $16 when the low-sulphur fuel rule kicks in on January 1, according to a Transpacific Stabilisation Agreement (TSA) announcement.
TSA carriers face an average $365 per ton low-sulphur fuel price differential from January 1 ?as environmental rules mandate a shift to fuel that costs between 50 - 60 per cent more than standard bunker.
"Going forward, the charge will be adjusted quarterly, based on a 13-week average of weekly prices. Charges for TEUs will be assessed at 90 per cent of FEU levels," said the TSA statement.
In the absence of firm prices in Asia, the new formula will base its east and west coast charges on weekly loading prices for New York and Los Angeles as posted by Bunkerworld.
The January 1 commencement date is expected to send low sulphur fuel prices soaring.
"Questions remain whether an overnight surge in demand for a relatively scarce fuel will be fully met and what a ramp-up on this scale will mean for prices," said TSA administrator Brian Conrad..
"Recent estimates suggest added annual cost per carrier in the hundreds of millions of dollars, so it is critical that lines act quickly to mitigate such a large impact," he said.
TSA has also modified its basic bunker charge formula to reflect larger, more fuel-efficient ships with increased effective capacity entering the trade, said the statement.
"Longer transit times and different consumption rates as a result of slow steaming, routing and schedule adjustments created by vessel-sharing alliances affect the price sensitivity," it said.
"For example, the Q4 2014 bunker charge now in place of $510 per FEU to the west coast and $969 to the east coast would be $501 and $957 with the planned revisions," the statement said.
Conrad indicated that further details on the new bunker and low-sulphur formula changes will be posted on the TSA website and communicated by the lines directly to customers prior to January 1.
TSA members are APL, "K" Line, China Shipping, Maersk, CMA CGM, Cosco, NYK, Evergreen, OOCL, Hanjin, Yangming, MCC, Hapag-Lloyd, Zim and Hyundai.
WORLD SHIPPING
23 October 2014 - 06:33
TSA carriers to levy range of charges to cover costly low-sulphur fuel
SHIPPERS moving cargo from Asia to the US can expect bunker charges of US$67 per FEU for east coast and $53/FEU for the west coast versus today's charge of $17 and $16 when the low-sulphur fuel rule kicks in on January 1, according to a Transpacific Stabilisation Agreement (TSA) announcement.
WORLD SHIPPING
23 October 2014 - 06:33
TSA carriers to levy range of charges to cover costly low-sulphur fuel
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