MSC to Introduce Global Fuel Surcharge

Shailaja A. Lakshmi
Monday, September 24, 2018

Improving the environmental performance of the container shipping supply chain is a common goal shared by shipping lines, shippers, freight forwarders and non-vessel operating common carriers, as well as governments, regulators, and the public around the world.

The UN International Maritime Organization (IMO) requires that from 1 January 2020, Sulphur content in the fuel used for international shipping must be limited globally to 0.5%, compared with the current standard of 3.5%, in order to minimize emissions of Sulphur oxides from ships.

MSC Mediterranean Shipping Company said in a press statement that its operating costs are expected to increase significantly as "we continue to prepare for the 2020 low-Sulphur fuel regime. We are therefore introducing a new Global Fuel Surcharge as of 1 January 2019 in order to help customers plan for the impact of the post-2020 fuel regime."

The new MSC Global Fuel Surcharge will replace existing bunker surcharge mechanisms and will reflect a combination of fuel prices at bunkering ports around the world and specific line costs such as transit times, fuel efficiency and other trade-related factors.

"The cost of the various changes we are making to our fleet and its fuel supply is in excess of two billions of dollars (USD) per year," it said.

MSC operates a modern, green fleet and seeks to operate in a sustainable and responsible way, guided by social and environmental values in its business plans and practices. The company is committed to contributing to global efforts to reduce ship emissions and fully supports the UN IMO’s work in this area.

A plan to optimize energy efficiency through continuous evaluation of trade route networks is also expected to help limit fuel use and improve service reliability.

Further details will be provided in due course, the release said.

Categories: Environmental Logistics Finance Legal

Related Stories

Saipem Bags $1.5B Contract for Türkiye Largest Offshore Gas Field

TotalEnergies Inks 10-Year LNG Supply Deal with South Korea’s KOGAS

Keppel, Seatrium in $53M Arbitration Case Over Brazil Corruption Scheme

EnQuest Enters Indonesia with Operatorship PSCs for Two Exploration Blocks

PXGEO Nets First Seismic Survey off Malaysia

SPE Offshore Europe 2025 set to drive transformational change for the energy sector

Shipbuilder Delivers Fast Crew Boat Pair to Aesen

Cheniere, JERA Ink Long-Term LNG Sale and Purchase Agreement

Inpex Picks FEED Contractors for Abadi LNG Onshore Plant

ADNOC Signs Long-Term LNG Deal with Hindustan Petroleum Corporation

Current News

Saipem Bags $1.5B Contract for Türkiye Largest Offshore Gas Field

Floating Offshore Wind Test Center Planned for Japan

Synergy Marine Group Completes Conversion of LNG Vessel to FSRU

PTTEP Hires McDermott for Deepwater Subsea Job off Malaysia

TotalEnergies Inks 10-Year LNG Supply Deal with South Korea’s KOGAS

Japan Picks Wood Mackenzie to Assess Trump-Backed Alaska LNG Scheme

PTTEP Greenlights $320M Offshore CCS Project at Arthit Gas Field in Thailand

Marco Polo Picks Salt Ship Design for Next-Gen Offshore Energy CSOV

CNOOC Brings Online Another Oil and Gas Project in South China Sea

Technip Energies Gets FEED Job for Inpex’ Abadi LNG Project in Indonesia

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com