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Maersk Line to charge low sulphur surcharge in ECA areas
21
Nov '14
Maersk Line, the containerized division of the Maersk Group said it will introduce a new Low Sulphur Surcharge (LSS), to offset the additional cost incurred by switching to cleaner fuels in Emission Control Areas, as required by the new regulation.

The surcharge, it said, will be effective from January 1, 2015 and affect all cargo with load port, trans- shipment and/or discharge port in Emission Control Areas.

According to Maersk line, this stems from its ongoing commitment to sustainability by supporting the establishment of ECAs, as a way to reduce air pollution from shipping.

The Low Sulphur Surcharge (LSS) will be charged as a separate item on the costumers’ invoices and tariff will be reviewed quarterly.

To offset the additional cost incurred, Maersk Line will incorporate the higher average fuel costs into the existing standard bunker surcharge (SBF).

The company expects that additional cost to customers in affected trades will be between US $50-150 per 40 feet container to and from main ports, depending on transit time inside ECA areas and whether touching ECA areas at both origin and destination.

Reefer containers will incur higher cost due to fuel used to generate power on board vessels and cost will also fluctuate depending on the volatility of low sulphur fuel prices.

“Fuel with a sulphur content of 0.1 per cent is significantly more expensive than fuel with 1.0 per cent sulphur content required in ECA areas today,” Franck Dedenis, MD for Maersk, India and Sri Lanka informs.

“Based on the current price difference of $260/ton, the additional cost to Maersk Liner business is estimated at $200 million per year. We will have to pass on the additional cost to our customers in order to fully support the ECA regulation,” he added.

Maersk Line has employees in 325 offices across 125 countries and a fleet of more than 500 vessels along with 1.9 million containers.

Maersk Line in India and Sri Lanka has a footprint across 21 offices and close to 400 employees covering all major locations and cargo hubs. (AR)

Fibre2fashion News Desk - India

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