Low Sulphur Surcharge Update

IMO 2020 Low Sulphur Surcharge (LSS) Update

Mainfreight New Zealand Service Announcement - 16 September 2020

As has been communicated over the last 12 months in Mainfreight market updates, from 1st January 2020 the new International Maritime Organisation 2020 Low Sulphur Regulation will come into force in order to reduce air pollution from ships. Whereas today ships can use fuel with up to 3.5% sulphur content, the new global sulphur cap will be 0.5%.

Currently the cost of 0.5% sulphur fuel is higher than that of the present fuel used by the industry, which will impact fuel surcharges from December 2019 as shipping lines begin to purchase low sulphur fuel in order to be compliant on January 1st 2020.
As a result, many shipping lines have begun to announce various low sulphur fuel cost recovery surcharges

As a result, many shipping lines have begun to announce various low sulphur fuel cost recovery surcharges including:

  • Environmental Fuel Fee
  • Fuel Adjustment Factor
  • Low Sulphur Surcharges (LSS)
  • IMO 2020 Transition Charge

A number of shipping lines are applying no additional fee, instead increasing their current Bunker Adjustment Factor (BAF) charges, or a combination of increased BAF and LSS.
To date these surcharges are being implemented and structured differently across trade lanes and carriers.

The majority of shipping lines servicing this region have advised they will apply these measures effective December 1st 2019 in order to recover the additional cost of low sulphur fuel during the month of December. The balance are indicating a January 1st implementation.

A collation of cost recovery measures published to date by the shipping lines can be viewed below.

Mainfreight Air & Ocean will recover these surcharges transparently, at cost, from the date they are applied.  For further information on any of these announcements, please contact your local Mainfreight Air & Ocean Sales or Customer Service Representative.

For further information on any of these announcements, please contact your local Mainfreight Air & Ocean Sales or Customer Service Representative.
 

LSS Summary (effective 1-November-2020)

All changes are highlighted in RED

--* : nil LSS, Carrier has applied a BAF increase from 1st January 2020

• LSS values apply to General Cargo only. For Reefer Containers, please contact your local Mainfreight Representative

• Surcharges correct as notified at 28 October

LSS Summary (effective 1-October-2020)

All changes are highlighted in RED

--* : nil LSS, Carrier has applied a BAF increase from 1st January 2020

• LSS values apply to General Cargo only. For Reefer Containers, please contact your local Mainfreight Representative

• Surcharges correct as notified at 16 September

 

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