Sponsored By

Box lines plan transpacific low sulphur fuel charge

Member lines of the Transpacific Stabilisation Agreement (TSA) are planning a low sulphur surcharge to offset “hundreds of millions” of dollars in extra costs from the 0.1% sulphur limit.

Marcus Hand, Editor

October 2, 2014

1 Min Read
Kalyakan - stock.adobe.com

The North American emission control area (ECA) will enforce a 0.1% sulphur limit from 1 January 2015 meaning that lines will most likely either have to burn MGO or use scrubbers to clean exhaust fumes.

Planned new recommended minimum contract rates for 2015 – 16 contracts will also include a low sulphur fuel recovery component that TSA expects to announce in the next few weeks. TSA said lines would incur “hundreds of millions of dollars” in financial impact from the new sulphur limits.

“The stricter 0.1% emissions mandate, requiring a shift to costlier marine gas oil (MGO), is of special concern because it will hit the trade all at once and no one can predict just yet where prices will settle,” explained Brian Conrad, TSA executive administrator. “That in turn makes it difficult to adapt our existing formula, but we expect to have a clearer picture closer to 1 January, in time to announce a charge with the necessary advance notice.”

Some lines such as Maersk Line and Mediterranean Shipping Co (MSC) have already announced ECA surcharges for 2015.

About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

Get the latest maritime news, analysis and more delivered to your inbox
Join 12,000+ members of the maritime community

You May Also Like