BAF

BAF calculator may help ease uncertainty over looming IMO 2020 fuel rule

With the deadline looming for the new IMO regulations reducing vessel sulphur dioxide emissions, new research suggests that fuel costs for shippers on the Asia-Europe trades could rise as much as 50%.
The International Maritime Organization’s sulphur regulations will come into force on 1 January and see the sulphur content of ship fuel reduced to 0.5%.
It will force ship operators to choose between using more refined marine gas oil (MGO) instead …

The post BAF calculator may help ease...

https://theloadstar.com/baf-calculator-may-help-ease-uncertainty-over-looming-imo-2020-fuel-rule/

Shippers must share the financial impact on carriers of IMO 2020 compliance

The implications for carriers and BCOs of the IMO low-sulphur regulations that come into force in less than 10 months have dominated this week’s JOC TPM Conference in Long Beach
Normally the annual event, this is the 19th, marks the start of annual contract rate negotiations on the transpacific, but this year the spectre of IMO 2020, and  how the greener fuel is to be paid for, has overshadowed all other …

The post Shippers must share the financial impact on carriers of IMO 2020 compliance...

https://theloadstar.com/shippers-must-share-the-financial-impact-on-carriers-of-imo-2020-compliance/

IMO 2020 low-sulphur fuel cap ‘could cost shipping industry $3bn’ next year

Shipping costs could rise by $3bn next year, according to a new report that will undoubtedly unnerve shippers.
The cost rise will follow the “steep” drop associated with next year’s IMO implementation of the 0.5% sulphur cap, against 3.5% allowed now.
The report, 2019 Global Container Shipping Outlook, by Alix Partners, notes that the new cap would see the costs of shipping on eastbound Asia-Americas and Asia-Europe routes increase by up to …

The post IMO 2020 low-sulphur fuel cap ‘could cost...

https://theloadstar.com/imo-2020-low-sulphur-fuel-cap-could-cost-shipping-industry-3bn-next-year/

How BCOs can navigate the choppy waters of the carriers’ new fuel surcharges

As transpacific ocean carriers approach a new season of contract negotiations with BCOs, supply chain advisors at Drewry are offering advice to help shippers navigate the impact of the new fuel surcharges.
If they are to survive, ocean carriers must be compensated for the extra cost of using low-sulphur fuels, a result of the IMO’s 0.5% sulphur cap regulations which come into force on 1 January 2020.
And several carriers have warned …

The post How BCOs can navigate the choppy waters of the...

https://theloadstar.co.uk/how-bcos-can-navigate-the-choppy-waters-of-the-carriers-new-fuel-surcharges/

Carriers in with a chance of surviving IMO 2020 if they ditch the ‘freebies’

Drewry is expecting “marginally higher contract rates, higher fuel charges and better carrier discipline” this year, with global freight rates up by about 6%.
However, in its 2019 Container Freight Outlook presentation today, for the two major east-west tradelanes, Drewry has evidence of flat new January-December contract rates between Asia and Europe, but anticipates some improvement in transpacific annual contract rates when they are renewed in May.
In regard to capacity management, …

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https://theloadstar.co.uk/carriers-in-with-a-chance-of-surviving-imo-2020-if-they-ditch-the-freebies/

Hapag-Lloyd jumps on the scrubber band wagon before they ‘sell out’

Hapag-Lloyd has belatedly joined the rush to install scrubber technology on its container vessels, ahead of the IMO 2020 0.5% sulphur cap.
Speaking during the carrier’s Capital Markets Day this week, chief operating officer, Anthony Firmin, said that the availability of exhaust gas cleaning systems was now extremely tight.
“If you wanted to order a scrubber today they are sold out,” he said.
He added that the total capacity for scrubber installation was …

The post Hapag-Lloyd jumps on the...

https://theloadstar.co.uk/hapag-lloyd-jumps-scrubber-band-wagon-sell/

Hapag-Lloyd attempts to avoid a ‘messy’ IMO 2020, unveiling its ‘fairer’ MRF

Hapag-Lloyd has rolled out its plans for recovering the extra cost of compliance with the IMO’s 0.5% sulphur cap for shipping, which comes into force in less than 15 months.
It no doubt hopes its proposals will be better received by customers than those of its rivals – slammed by suspicious shippers as “lacking transparency” and  “blatant profiteering”.
Hapag-Lloyd estimates the annual cost of compliance with IMO2020, from 1 January 2020, for its fleet of some …

The post Hapag-Lloyd attempts to...

https://theloadstar.co.uk/hapag-lloyd-attempts-avoid-messy-imo-2020-unveiling-fairer-mrf/

Shippers are being ‘left in the dark’ as carriers look to recover IMO 2020 costs

There has been insufficient mainstream publicity on the IMO’s 2020 global emissions regulation for shipping, and a lack of transparency by container lines on their recovery strategies.
These are the worrying conclusions of a review by maritime consultant Alphaliner and a shipper survey by Drewry Supply Chain Advisors.
It has been estimated that the cost of compliance with the IMO’s 0.5% sulphur cap on fuel from 1 January 2020 could be a $15bn annual …

The post Shippers are being ‘left in the...

https://theloadstar.co.uk/shippers-left-dark-carriers-look-recover-imo-2020-costs/

Why the container industry needs to replace BAF with a new pricing tool

The container industry has an elephant in the room. It’s big, smelly and has some serious boundary issues. Its name is the Bunker Adjustment Factor and recently it has grown so large that market players can barely see each other behind its fat bulk.

It creates a lot of uncertainty and engenders a lack of trust in the supply chain, which is dangerous for everyone be it a carrier, a BCO or a logistics provider.

With the prospect of volatile times ahead, and bunker prices likely to take the...

http://blogs.platts.com/2018/03/21/container-industry-needs-replace-baf-new-pricing-tool/

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