Maersk, CMA announced: May 1 to stop the levy of low sulfur surcharge
The IMO2020 sulphur restriction order, which took effect on January 1, came into force on March 1. From now on, ships must use fuel with sulphur content of no more than 0.5%. From March 1, ships without desulfurization towers will not be allowed to carry fuel with sulphur content of more than 0.5%.
In mid-march, the 9200TEU MSC Joanna, owned by Mediterranean shipping, was found to have improperly disposed of 700 tonnes of high-sulphur oil after entering uae waters.After the incident, the uae transport authority issued a “one-year ban on berthing in any port in the country” and the ship’s captain could not work on any ship visiting the Middle East country and faced legal proceedings.
The price of low-sulfur oil at the world’s major refueling ports has fallen more than 60 percent since the end of 2019, amid a sharp drop in global crude prices and a drop in demand due to reduced shipping activity.On March 31, the average price of low-sulphur oil in Singapore, the world’s largest refuelling port, was $263.50 a tonne.At the us port of Houston it was $230 a tonne.
The price gap between high-sulphur and low-sulphur bunker fuels (HSFO and LSFO) has fallen from a high of nearly $500 a tonne in early January to less than $100 a tonne in late march as crude prices have fallen sharply and demand has fallen.The gap has narrowed by two-thirds, to double digits in some ports.This has greatly reduced the cost of low-sulphur fuel for shipping companies.
CMA announced in a statement on April 1 that the low sulphur surcharge (LSS20) imposed by CMA on December 1, 2019 to cover increased fuel related costs related to the implementation of IMO 2020 regulations will no longer apply from May 1, i.e., the fee will be waived after May 1.”Given the current VLSFO prices, we have temporarily suspended the low sulphur surcharge on our customers, but there is no guarantee that the low sulphur oil price will not rise again, so it is likely that the surcharge will be imposed again in the future,” it said.
Maersk recently announced that due to the recent decline in fuel prices, maersk EFF level will be set to zero from May 1, 2020.The rating will remain in place until further notice of fuel price increases.
In December 2019, maersk introduced the environmental fuel charge (EFF) in response to increased and fluctuating fuel-related costs associated with the implementation of IMO 2020.The EFF level is reviewed on a monthly basis to reflect the latest low sulphur fuel developments for a reasonable cost sharing between maersk and the customer in the initial phase of IMO2020.
