Maersk Line is set hike its bunker adjustment factor (BAF) after prices of very low sulphur fuel oil (VLSFO) have soared with the introduction of the IMO 2020 global sulphur cap.
Maersk’s environmental fuel fee (EEF) and BAF are subject to trigger of an increase or decrease in the monthly bunker price by an average of $50 per tonne or more.
In an advisory to customers Maersk noted a substantial increase in the VLSFO prices in particular highlighting Singapore were prices were over $700 per tonne earlier this month, more than a 20% increase on the prices used to set BAF and EEF levels.
“The average increase in January thus is expected to exceed $50 per mt. Accordingly, Maersk will apply the additional monthly trigger defined in our Bunker Adjustment Factor (BAF) and Environmental Fuel Fee (EFF) formulas and the new tariffs will be effective 1 March 2020,” the advisory said.
Maersk said the tariff increases across all trades would range from $50 – $200 per FEU with exact quantums to be communicated by the end of the month.