We have recently received updated information regarding a new environmental surcharge update. This new fuel surcharge is set to take effect as of December 1st 2019. The new additional fuel surcharge is known as IMO BAF (International Maritime Organisation Bunker Adjustment Fee) and has been introduced due to new regulations regarding the amount of sulphur that can be used in fuel for shipping vessels.
To give a brief overview of the new environmental surcharge update, the current sulphur levels of fuel used today is 3.5% and this will now need to be reduced to 0.5% in an attempt to reduce the impact that global shipping has on the environment. It was announced earlier this year that a new surcharge would come into play however up until last week it wasn’t clear as to how much this would cost and when it would come into effect.
The shipping lines have indicated an IMO BAF surcharge of $125 per TEU so far, although this does vary line by line. We will factor this surcharge into our monthly rate sheets and in order to minimise the financial impact that this has on our customers, we will book on the most cost-effective service for you. Please be assured that whatever the environmental surcharges may be, we will be passing this on at net cost as we value our clients business and wish to be as transparent as possible.
For ease, we will show the environmental surcharge update as a separate line on your rate sheet and invoices so that you know exactly what you are paying for. If you do have any questions or concerns regarding the environmental surcharge update, please as always get in touch with your account manager who will be more than happy to assist.
Thank you for your continued support, and should we hear anything further on this matter we will update you accordingly.