MEDITERRANEAN Shipping Co says most of its customers are accepting the surcharges being levied to cover the added cost of low-sulphur fuel without a quibble.
The majority recognise the environmental benefits of cleaner fuel and so are not questioning the extra charges, an MSC spokesman told Lloyd’s List.
The line has calculated that burning more expensive fuel in emission-control areas will add around $250m a year to its bunker bills.
It aims to pass on this cost to shippers through surcharges ranging from as little as $10 per teu to as high as $120 per teu, depending on the service in question.
The goal is to balance the amount raised through the ECA surcharge to the added fuel costs as closely as possible.
The line has calculated that burning more expensive fuel in emission-control areas will add around $250m a year to its bunker bills.
It aims to pass on this cost to shippers through surcharges ranging from as little as $10 per teu to as high as $120 per teu, depending on the service in question.
The goal is to balance the amount raised through the ECA surcharge to the added fuel costs as closely as possible.
Most surcharges announced by MSC are in the $50-$85 per teu bracket, but shippers with cargo on services between the Baltic region and east coast of Canada, both within ECA zones, will pay the most.
The individual levies were recently adjusted a little from the initial indications.
The new rules take effect on January 1, and have caused controversy within the shipping industry, and particularly in the shortsea sector where operators are warning that the higher costs will drive freight back onto the roads.
For deepsea lines, though, the response has been positive, with MSC finding that most cargo owners understand why lines are imposing the surcharge and so are not raising objections.
Shippers have also benefited from weak freight rates on many trade routes in recent months.
The individual levies were recently adjusted a little from the initial indications.
The new rules take effect on January 1, and have caused controversy within the shipping industry, and particularly in the shortsea sector where operators are warning that the higher costs will drive freight back onto the roads.
For deepsea lines, though, the response has been positive, with MSC finding that most cargo owners understand why lines are imposing the surcharge and so are not raising objections.
Shippers have also benefited from weak freight rates on many trade routes in recent months.
In the Asia-Europe trades, for example, spot rates are now down to little more than $700 per teu westbound, less than half the rates prevailing earlier in the year.
MSC’s surcharge for cargo moving on its Lion and Silk services from Asia to northern Europe including direct calls in the UK has been set at $15 per teu, rising to $52 for Scandinavian and Baltic destinations.
MSC’s surcharge for cargo moving on its Lion and Silk services from Asia to northern Europe including direct calls in the UK has been set at $15 per teu, rising to $52 for Scandinavian and Baltic destinations.
Comments
Post a Comment