Americas News
ECA Rules Raise Shipper's Bunker Bill
Matson, Inc. (Matson) says its bunker bills have risen due to the North American Emission Control Area (ECA) rules requiring it to use more expensive low sulfur bunkers for about 20 percent of each voyage.
As a result, the U.S. shipper says it is raising its bunker surcharge for the first time since October 2012.
"Since our last decrease in July 2013, Matson's fuel costs have increased," Dave Hoppes, senior vice president, ocean services, said in an emailed statement to customers.
"We are now seeing the impact of Emission Control Area (ECA) regulations that were implemented in 2012, which require carriers to burn the more costly low-sulfur distillate fuel 200 miles off U.S. coastlines."
"For Matson, this has resulted in increased fuel costs for about 20% of each voyage, both westbound and eastbound."
Matson says its fuel surcharge will increase by 5 percentage points, from 34.5% to 39.5% for its Hawaii service, and from 36.5% to 41.5% for its Guam/CNMI and Micronesia services, effective March 23, 2014.
"As with all increases, Matson gives our customers 30 days advance notice prior to implementation. We will continue to monitor fuel prices and adjust the surcharge accordingly," Hoppes concluded.
The North American ECA, which came into force on August 1, 2012, effectively means all ships operating within 200 nautical miles of the U.S. and Canada coastline must use a marine fuel with a sulfur content not exceeding 1.00 percent by weight.
That limit tightens to 0.10 percent by weight in 2015.
