Maersk says it is pricing its IMO 2020 grade fuel at a discount of $50/mt to 0.10%S MGO for its BAF calculations, reports Ship&Bunker.
Note to customers
Due to a lack of clear VLSFO pricing ahead of the new global 0.50% sulfur cap for bunkers, Maersk says it is pricing its IMO 2020 grade fuel at a discount of $50/mt to 0.10%S MGO for its BAF calculations.
Maersk explained in a note to customers, “Contrary to our plans and expectations, it seems highly unlikely that there will be any well established fuel price indices reflecting the actual trading prices for 0.50% sulphur fuels by the time we need to calculate BAF and EFF.”
“We will instead use the fuel price index for 0.1% sulphur gasoil with a fixed deduction of 50 USD/ton.”
Last two months indications as base
The discount is consistent with early spot price indications over the last two months, with Ship & Bunker data showing the average VLSFO discount to MGO for the period was
- $38.40/mt in Singapore,
- $40.12/mt in Rotterdam, and
- $78.10 in Fujairah
Collectively an average of $52.21/mt.
A new IMO2020 charge for customers
The move will presumably be welcomed by shippers who, due to the lack of available pricing for IMO2020 grade fuel, have so far been left with no choice but to plan for next year based on MGO prices.
In addition, Maersk also revealed it is adding a new IMO2020 charge for some customers.
“BAF is not applicable to spot and short-term business. However, the significant fuel cost increases expected around 1 January 2020 equally apply to this segment of customers,” the firm explained.
“Maersk will therefore introduce an Environmental Fuel Fee (EFF) for all spot business and contracts with validity up to 3 months. EFF will apply to all trades.”
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Source: Ship&Bunker
