OOCL to Raise Bunker Surcharge to Cover 2015 ECA Compliance Costs

by Ship & Bunker News Team
Wednesday September 24, 2014

Orient Overseas Container Line Ltd. (OOCL) has announced that from next year it will increase its Bunker Adjustment Factor (BAF) surcharge to reflect the increased cost associated with using LSMGO to comply with tightening Emission Control Area (ECA) rules coming into effect on January 1, 2015.

"At this time, it is very difficult to predict the exact financial impact of this new regulation (due to the unpredictable and fluctuating nature of fuel prices) on our operations," said the company.

"But once the new regulation is in effect, it is our intention to adjust our Bunker Adjustment Factor (BAF) formula to incorporate the new LSMGO 0.1% fuel costs, using the actual ratio required on the round voyage," it added.

OOCL said it would recalculate the new 'BAF inclusive of LS' on a monthly basis and inform customers of the adjusted cost per twenty-foot equivalent unit within relevant statutory notice periods.

The company intends to use low-sulfur marine gasoil to comply with the new rules which will see allowable limits of the sulfur content of bunkers reduced from 1.0 percent to 0.10 percent by weight while operating within ECAs.

Denmark-based Unifeeder AS recently said it would be adding a surcharge to its pricing to address the extra costs of operating in ECAs from 2015.

Ship & Bunker News Team
To contact the editor responsible for this story email us at editor@shipandbunker.com