World News
Hapag-Lloyd Warns of 50-100% Premiums to Cover 2015 Low-Sulfur Costs
Container carrier Hapag-Lloyd says customers should be prepared for low-sulfur fuel surcharges to be included in all quotations for contracts that go into 2015.
"The new low sulphur fuel regulations will result in extensive increases in bunker costs," the company said.
Hapag-Lloyd says it expects prices for low-sulfur fuel to be 50 percent to 100 percent higher than current bunker fuel costs, with the current premium for the fuel exacerbated by increased demand for low-sulfur bunkers.
The requirement to use fuel with 0.10 percent sulfur—compared with the current limit of 1 percent—applies to Emissions Control Areas (ECAs) in Northern Europe and North America.
Maersk Line said last week that it will charge an extra $50 to $150 per forty-foot container for shipping on routes running through ECAs, with the surcharges varying depending on current prices of low-sulfur fuel and time spent within an ECA on any given voyage.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.00 | 8.50 | 779.00 | 29.50 |
| Rotterdam | 608.00 | 11.00 | 764.50 | 24.50 |
| Houston | 636.50 | 8.00 | 807.50 | 5.00 |
| Fujairah | 649.50 | 4.00 | 888.50 | 11.50 |
| Global 20 Ports Average | 665.50 | 6.50 | 870.50 | 14.50 |
| Global 4 Ports Average | 635.50 | 3.50 | 810.00 | 17.50 |
| Global Average Bunker Price | 725.00 | 2.50 | 925.50 | 8.00 |
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