Shipowners Unhappy With Worldscale ECA Differential Review

by Ship & Bunker News Team
Monday March 23, 2015

Shipowners have not reacted warmly to an announcement by the Worldscale Association (Worldscale) that it plans to review Emissions Control Area (ECA) fixed rate differentials for 2015, Platts reports.

Currently, fixed rate differentials for the European ECA are $48.35 per mile, while those for the North American ECA are $65.31 per mile.

Calculations made by Platts suggest this differential, which is the premium for using 0.10 percent sulfur ECA fuel compared to IFO380, should work out to just over $35 per mile.

According to the report, charterers have commonly paid shipowners based on the Worldscale rate differentials for both laden and ballast legs.

"I am not happy at all," said one shipowner.

"In 2008 when the 380 CST prices went up by hundreds of dollars there was no adjustment made to Worldscale differentials and now with a much narrower change they decide to make an adjustment before the end of the year."

But the report suggests others have welcomed the news, having felt they have overpaid shipowners until now.

"I'm definitely in favor [of the review]," said one.

"I imagine the owners are very annoyed as they have been earning good money on some of these voyages because of the large ECA differential."

In October, Worldscale released its 2015 bunker rates.