Effective, 1st January 2019, major shipping lines will be implementing a new Bunker Adjustment Factor (BAF) in order to cover the costs following the International Maritime Organisation’s sulphur cap regulations.
The aim is to reduce the amount of sulphur in bunker fuels to 0,5% and move towards a more environmentally friendly industry. The new guidelines mean extra costs incurred by the shipping lines and in turn, the customer.
Shipping lines will apply and adjust the existing bunker surcharges on a trade-by-trade basis. These charges will be based on specific line costs, transit times and fuel efficiency. Although the restrictions will only be introduced in 2020, the additional charges will be billed from January 2019. This is to help customers plan for the 2020 regulations, however many feel that the shipping lines are cashing in on a full 12 months of charges before the rule is implemented.
We will keep all customers updated as the January 2019 implementation approaches.