World News
Shippers Need to Accept IMO2020 Bunker Surcharges Start Now
Shippers have already been airing their grievances with carriers' IMO2020 bunker surcharge plans, but they need to accept they will have to start paying them now and not just from January 1, 2020 when the new global sulfur cap comes into force.
That was the message from Nick Lurkin, Climate & Environment at Royal Association of Netherlands Shipowners (KVNR), who spoke at the recent European Shippers' Council Maritime Day 2019.
"We understand some shippers are unhappy with these surcharges, but there are very clear reasons," Lurkin was quoted by The Loadstar as saying.
"It's because we cannot change to low-sulphur fuel on 31 December, we need to be bunkering now, so it is ready to use on 1 January."
In contrast, Shippers are said to favour Q4 for when the carriers' surcharge should begin, according to the report.
Bunker industry expectation so far is that the 0.50% fuels will start to be lifted from Q3 this year.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| Rotterdam | 602.00 | 0.50 | 748.00 | 6.00 |
| Houston | 624.00 | 5.00 | 792.00 | 3.50 |
| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
| Global 20 Ports Average | 662.00 | 2.00 | 855.00 | 1.50 |
| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
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