2020 Sulphur Cap: MSC Introduces New Bunker Charge Mechanism For 2019

MSC Mediterranean Shipping Company S.A. is introducing new bunker charges as of 1 January 2019 to achieve the common goal of improving environmental performance in the container shipping supply chain, as required by the 2020 Sulphur cap.

Port of Philadelphia
Representation Image – Credits: philaport.com

We believe that it is essential to segregate transparently the burden of fuel costs, in order for this cost to be passed on visibly throughout the supply chain. Passing on that cost is also vital to ensure the sustainable future of the container shipping industry.

With regard to the UN International Maritime Organization’s 2020 Sulphur fuel content regime, MSC has estimated that the cost of the various changes we are making to our fleet and its fuel supply is in excess of two billion dollars (USD) per year. We have already had to start incurring these costs to be ready for 2020.

After considerable analysis of operating costs and related market factors, MSC has established a new price mechanism – the BRC (Bunker Recovery Charge) – which will be transparent to respective trades. It will reflect the true additional cost that MSC will incur as a result of the regulatory changes we all support in order to protect the environment.

The BRC replaces the current Bunker Contribution (BUC), Fuel Adjustment Factor (FAD) and Emergency Fuel Surcharge (EFS), and largely absorbs other pre-existing fuel-related charges. Charges specifically related to coastal Emission Control Areas (ECAs) will remain in place.

Reference: msc.com

Disclaimer :
The information contained in this website is for general information purposes only. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

Do you have info to share with us ? Suggest a correction

About Author

Marine Insight News Network is a premier source for up-to-date, comprehensive, and insightful coverage of the maritime industry. Dedicated to offering the latest news, trends, and analyses in shipping, marine technology, regulations, and global maritime affairs, Marine Insight News Network prides itself on delivering accurate, engaging, and relevant information.

Subscribe To Our Newsletters

By subscribing, you agree to our Privacy Policy and may receive occasional deal communications; you can unsubscribe anytime.

Web Stories

Leave a Reply

Your email address will not be published. Required fields are marked *