Last month our newsletter discussed the implementation of IMO 2020 and the introduction of surcharges by the shipping lines to cover the costs of meeting the low sulphur requirements of IMO 2020 (IMO 2020 Approaching).
Shipping lines are starting to release estimated costs to apply for Low Sulphur Surcharges (LSS) to commence 1 December 2019. As mentioned, the LSS will be per TEU and calculated based on vessel size/utilization/transit time/direction of shipments.
Levels will be released by carriers as they finalize the cost of Low Sulphur Fuel (LSF) closer to commencement, fees will differ based on origins (i.e. USA and EU to Oceania will be higher than Asia to Oceania).
The below are estimates provided by carriers from North and South East Asia (it does not apply to shipments from USA/ISC/EU)
OOCL estimate between USD 90 to USD 100 per TEU
ANL estimate USD 100 per TEU
PIL estimate USD 105 to USD 125 per TEU
LSS will be reviewed monthly based on a collection of costs around the different regions the fuel is sourced.
OOCL has indicated that current Low Sulphur levies applied in ports in China (and other origins) for use of High sulphur fuel (HSF) will be removed from origin costs.
We are investigating this will all carriers and will confirm when they have been removed as soon as we are notified.