French carrier CMA CGM today became the third global shipping line to announce a low-sulfur charge effective December 1 for cargo moving on short-term contracts of up to three months. It joins Maersk Line and Hapag-Lloyd who sent similar “Environmental fuel fee” notifications last week to cover an increase in fuel-related costs determined by the implementation of the IMO 2020 regulation as of January.
The surcharge is calculated using the price difference between high-sulfur fuel and low-sulfur fuel average prices of October. Last week, the spread widened to 58 per cent.
According to the carrier’s online tool (tariff value calculator), a Shanghai-Rotterdam shipment in December generates a low-sulfur fuel surcharge of $120 per TEU, or approximately 17 per cent of the current spot price per container. (photo HPA)