BAF

Supply chain radar: The drama unfolds – spare a thought for the shippers

For a raft of investors, the most pressing question in 2021 so far has been how long the new container shipping supercycle would last, but for the trade it’s different.
For many freight buyers, the start of the year was characterised by the surprise news that the Saudi government had indicated higher fuel costs might be on the way.
Just before the announcement – good timing! – Premium wrote: “Ocean freight randomness – the skeleton …

The post Supply chain radar: The drama unfolds – spare a...

https://theloadstar.com/supply-chain-radar-the-drama-unfolds-spare-a-thought-for-the-shippers/

Gong Xi Fat Cai! Freight rates out of Asia hold steady as Year of the Rat begins

On the eve of Chinese New Year, container freight rates out of Asia remained largely unchanged from the week before, as the country begins its annual two-week public holiday, with factories mostly shut and port and shipping activity muted.
However, after several weeks of blanked sailings, shippers and forwarders – particularly on the Asia-Europe trades – can expect container rollovers and delays to shipments, according to Martin Holst-Mikkelsen, head of ocean …

The post Gong Xi Fat Cai! Freight...

https://theloadstar.com/scfi-and-gong-xi-fat-cai/

CMA CGM to update BAF in North Africa

Following bunker prices evolution since the last surcharge adjustment, and considering the obligation for shipping companies to reduce their sulphur emissions by 85%, CMA CGM SSL Intra Europe will update its BAF as follows on its Roro South services connecting France with Algeria, Morocco and Tunisia (import & export):

Effective February 1st, 2020:

Cargo Algeria service Morocco service Tunisia service
Roll, fullEUR 538/unitEUR 508/unitEUR 315/unit
Roll, emptyEUR 346/unitEUR...

https://container-news.com/cma-cgm-update-baf-north-africa/

Drewry Plans To Launch BAF Based on LSFO

  • Drewry will launch the first Bunker Adjustment Factor (BAF) reference price based on low-sulphur fuel.
  • It will assist shipowners to cover the additional cost of the cleaner, low-sulphur fuel, as the sulphur cap is approaching.
  • Weighted average low-sulphur bunker price for major bunkering ports tracked by Drewry has been $542 per metric tonne.

According to an article published in Safety4Sea, in the first days of December Drewry will launch the first Bunker Adjustment Factor (BAF) reference...

http://mfame.guru/drewry-plans-to-launch-baf-based-on-lsfo/

IMO2020 Bunkering Problems Addressed in BAF Transparent Indexing Mechanism

In a major development, Shipping analyst Drewry and the European Shippers’ Council (ESC) have defined and published a simplified BAF indexing mechanism and bunker charge guide to help shippers monitor and control bunker charges as shipping lines switch to the more expensive bunkers required under the IMO 2020 low-sulphur regulation, reports Ship Insight.

The mechanism is the result of the ESC-Drewry IMO toolkit reference group of ten experts that Drewry and the ESC tasked with gathering views...

http://mfame.guru/imo2020-bunkering-problems-addressed-in-baf-transparent-indexing-mechanism/

Maersk Surcharge Clarity: Shippers To Pay ‘Cost Recovery’ Only

In a major development, Maersk Line has announced that they will only charge for the “extra cost of compliance” as the carrier introduces new IMO 2020 low-sulfur fuels in the coming months, reports Freight Waves

Charge Complexity Baffles Shippers

As reported by FreightWaves, shippers and forwarders have expressed dismay about the complexity of the charges being levied by some container lines as they phase in new low-sulfur bunker fuels ahead of the Jan. 1 International Maritime Organization...

http://mfame.guru/says-maersk-surcharge-clarity-shippers-to-pay-cost-recovery-only/

Maersk Pricing Bunkers at $50 Discount To MGO and Adds New Fuel Fee

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...

http://mfame.guru/maersk-pricing-bunkers-at-50-discount-to-mgo-and-adds-new-fuel-fee/

Failure to recoup increased low sulphur fuel costs could see lines blanking more sailings

With IMO 2020 0.5% sulphur cap on marine fuel just over 100 days from becoming law a leading shipping analyst has warned shippers that it is vital that ocean carriers succeed in obtaining their interim BAF surcharges.
Container market expert and chief executive of SeaIntelligence Consulting Lars Jensen said that a failure to obtain compensation for the extra costs relating to the preparation for IMO 2020 could result in a “significant” …

The post Failure to recoup increased low sulphur fuel...

https://theloadstar.com/failure-to-recoup-increased-low-sulphur-fuel-costs-could-see-lines-blanking-more-sailings/

IMO 2020: Maersk Issues EFF and Updates BAF

  • Maersk issues a new Environmental Fuel Fee, and updates the existing Bunker Adjustment Factor, with respect to the approaching IMO2020.
  • The Bunker Adjustment Factor is designed to adjust contract rates within the duration of a contract, based on fluctuations in fuel-related costs.
  • The Environmental Fuel Fee applies to all spot business and contracts with validity up to 3 months.

In light of the approaching 2020 sulphur cap, which sees vessels using fuel containing up to 0.5% sulphur, Maersk’s...

http://mfame.guru/imo-2020-maersk-issues-eff-and-updates-baf/

Shippers Brace for Ocean Freight Fuel Price Surge

According to Drewry’s survey, container shipping bunker adjustment factors (BAFs) will soar between 4Q 2019 and 1Q 2020, and will be very volatile in the first half of 2020, reports Lloyd’s Loading List.

Low-sulphur price tracker?

According to Drewry, although better information are available, many cargo owners are still uncertain about the impact of IMO 2020 on their freight costs. 

It also predicts BAFs will soar from Q4 2019 and be very volatile in the first half of 2020, before falling in 2021.

http://mfame.guru/shippers-brace-for-ocean-freight-fuel-price-surge/

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