Just two days before the IMO 2020 sulphur cap comes into effect on 1 January 2020, the Hong Kong Shippers Council has recommended its members reject additional fuel surcharges recently introduced by major container lines that appear to be a charge over and above that previously agreed in relation to the introduction of low sulphur fuels.
Citing examples from Emirates, Evergreen, Hamburg Sud, Maersk, Hapag-Lloyd, MSC and Ocean Network Express, the HKSC said the IMO Compliance Surcharges, were in addition to the normal Bunker Adjustment Factor, Bunker Surcharge, Fuel Surcharge, etc. and the Low Sulphur Fuel Surcharge that carriers introduced previously for the use of low sulphur fuel at the Hong Kong Emissions Control Area. The LSS is for Hong Kong shippers (importers and exporters are both included).
“The Council does not consider the surcharge justified,” the local shippers’ body said. “The 0.5% sulphur and other compliance fuel is a requirement for all shipping lines and hence part of the normal operating costs. A surcharge is only to cover unexpected developments such as war and natural catastrophe and should be short term in nature. Accordingly, shipping lines should incorporate any expenses related to the IMO regulations into normal freight rates to be negotiated by shippers and shipping lines under open principles, instead of introducing a new surcharge.”
The HKSC concluded, “Shippers should reject such a surcharge. Shippers should also note that the surcharges of different lines are substantially different in charge level and shippers should consider the differences when selecting lines.
Source:hongkongmaritimehub
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