World News
Container Line CMA CGM Raises Low Sulfur Surcharge Value to $275/mt
French container line CMA CGM has set its low sulfur surcharge for the bunkers consumed by its ships at $275/mt from February 1, the company said late last week.
The box ship operator initially set the premium at $200/mt from December 1, based on the average price difference between high sulfur fuel oil and 0.50% sulfur fuels in October.
The surcharge is used to calculate extra fuel costs on top of the company's freight rates to compensate CMA CGM for the higher bills incurred complying with the International Maritime Organization's new global 0.50% sulfur limit for bunkers.
The surcharge applies to contracts of three months or less; longer-term deals are covered by the company's bunker adjustment factor, which is now based on 0.50% sulfur fuel prices rather than HSFO.
The surcharge is multiplied by a trade coefficient representing fuel consumption per box carried to come up with the total extra cost to shippers.
While the old rate applicable from December 1 was based solely on prices from October, the new $275/mt surcharge from February is based on the difference between average HSFO prices from October and 0.50% sulfur bunker prices from December, as October 2019 will remain the company's reference point for HSFO prices.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 548.00 | 0.50 | 677.50 | 2.00 |
| Rotterdam | 513.00 | 0.50 | 649.00 | 3.00 |
| Houston | 544.50 | 2.50 | 675.00 | 4.00 |
| Fujairah | 541.50 | 2.50 | 744.00 | 3.50 |
| Global 20 Ports Average | 572.00 | 2.50 | 758.00 | 2.50 |
| Global 4 Ports Average | 536.50 | 1.50 | 686.50 | 3.00 |
| Global Average Bunker Price | 624.00 | 2.50 | 801.00 | 3.50 |
Popular Now More
-
Dec 23The company carried out worldwide marine fuel trading from offices in Singapore. -
Dec 232024's total is heading for a 3.4% gain from 2023 and the highest level since 2019, according to the latest market survey from Ship & Bunker and 2050 Marine Energy. -
Dec 23"We're being ripped off at the Panama Canal like we're being ripped off everywhere else," President Trump was cited as saying at an event in Arizona on Sunday.