VARYING by geography and trade lane, low sulphur surcharges will range from US$30 per FEU for Asia-North West Europe to $280 per FEU for the Baltic to most of Canada's east coast ports.
The surcharges are being levied by carriers to ship containers to or from "emission control areas" when new pollution rules come into effect from January.
In announcing the surcharges, the shipping lines said that they will collect new "low sulphur surcharges" or "emission control area charges" in addition to ocean freight, reports Drewry.
For the high volume, big ship routes between Asia and both North West Europe and the US, the surcharges are low and represent only a marginal increase on current freight costs.
However, for the transatlantic trade lane, the low sulphur surcharges of at least $120 per FEU represent an extra cost of six to 12 per cent on top of typical all-in spot rates of $1,000 eastbound and $2,000 westbound (including terminal handling charges), according to Drewry's global freight rate database.
Worryingly, for Baltic region exporters and for any company shipping containerised products to and from the Baltic region (Finland, the Baltic states and Russia), low sulphur surcharges for the Baltic region are $100 per FEU higher than for north west Europe.
This differential is justified because fuel inefficient feeder ships are required to serve Baltic ports and they must use low sulphur fuel in the area.
The trade lane between the Baltic region and the US east coast has the most expensive low sulphur surcharge at $280 per FEU.
The new fuel surcharges also vary by carrier. On the Asia-Europe trade lane, the surcharges of the three largest shipping lines are similar.
On the transpacific trade lane, the carrier group Transpacific Stabilisation Agreement announced on October 21 initial low sulphur charges of $67 and $53 per FEU for the US east and west coasts, respectively.
On the transatlantic route, surcharges vary widely between carriers, with MSC being more costly.
By using more fuel-efficient mega vessels, carriers may be able to mitigate some of these cost increases. However, no one knows whether, come January, low sulphur marine gas oil will remain at current prices or will increase in response to much higher industry demand.
This means that the low sulphur fuel surcharges could go up again in 2015.
WORLD SHIPPING
04 November 2014 - 22:23
Low sulphur surcharges to range from US$30-$280 per FEU
VARYING by geography and trade lane, low sulphur surcharges will range from US$30 per FEU for Asia-North West Europe to $280 per FEU for the Baltic to most of Canada's east coast ports.
WORLD SHIPPING
04 November 2014 - 22:23
Low sulphur surcharges to range from US$30-$280 per FEU
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