THE Global Shippers' Forum (GSF) is demanding greater transparency on low sulphur surcharges from freight carriers and an acceleration in the information process, as they prepare to finalise freight budgets for next year.
The shippers urgently need more information about the likely cost implications of low sulphur fuel ahead of the implementation of Emission Control Areas (ECA) from January 1.
The new legal requirements will come into force in North Europe (the Baltic Sea, North Sea and English Channel) and North America (200 nautical miles from American and Canadian shores).
The maximum allowed content of sulphur in fuel burned in the ECAs will be lowered to 0.1 per cent sulphur from the current one per cent, noted Lloyd's Loading List.
"With one or two notable exceptions, few shipping lines have yet provided information to their customers on their low sulphur fuel strategies and the extra cost to be passed on to shippers via increased rates or bunker surcharges," said GSF secretary general Chris Welsh.
"With shippers under pressure to finalise freight budgets for 2015 this information is urgently required by customers," he said.
The GSF said it recognised that implementation of the new low sulphur fuel limits represents a challenge to the shipping industry.
It noted that there are a range of options open to carriers: use of marine gas oil which meets the 0.15 sulphur content, use of alternative fuels such as LNG and methanol and the use of abatement technology such as scrubbers to dilute exhaust gas sulphur emissions to the 0.1 per cent limit.
"The fact that there are a range of options for managing the new low sulphur limits means that the impact on costs will be very different from one shipping line to another," he said.
"For example, fuel costs for new-built vessels capable of using alternative fuels will be substantially different to a carrier using abatement equipment or higher grade marine gas oil," said Mr Welsh.
GSF has stated that as there are various options for managing the new sulphur requirements, shippers will require greater transparency from carriers in order to substantiate extra freight charges and bunker surcharges levied by shipping lines to recover additional costs.
Container lines, freight ferry companies and road haulage operators all look set to pass on new low sulphur surcharges to their customers from next year, although their plans and the levels of surcharges have yet to be communicated to most shippers and freight forwarders.
Several container lines have already outlined their plans to introduce ECA surcharges from next year, with planned container surcharges varying from US$15 per TEU to more than $165 per TEU, depending on the route.