OOCL update on the Low Sulphur charge

OOCL update on the Low Sulphur charge

 

This OOCL update is meant for the customers who want to have all in rate, including the BAF:

 

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Trans-Atlantic Trade – Low Sulphur Bunker Surcharge Update

As indicated in our customer advisory dated September 23, OOCL complies with environmental regulations related to the Emission Control Areas around Europe and North America and we have taken steps to update our Bunker Adjustment Formula (BAF) to include, for simplification purposes, the costs related to the use of the new Low Sulphur Marine Gas Oil (LSMGO) requirements.

In catering to your needs, we understand that there will be a number of customers that would still prefer “BAF Inclusive” rates agreements instead of the new BAF surcharge being applied as a separate part of the pricing structure.   To meet this requirement, we would like to take this opportunity to notify customers that OOCL will introduce a “Low Sulphur Surcharge” (LSS) for all “BAF Inclusive” contracts commencing from or after January 1, 2015.

The initial quantum for the LSS, to be reviewed on a monthly basis, will be as follows:

Europe to/from USEC/Gulf & Mexico    – USD65/20’  & USD130/40’
Europe to/from USWC                        – USD110/20’ & USD220/40’
Europe to/from Canada                      – USD75/20’ & USD150/40’

For customers who prefer BAF as a separate surcharge, the costs associated to the use of the new LSMGO is included in the BAF formula.

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