29/11/2019

Introduction of a Low Sulphur Surcharge - Effective 1st December 2019

To our Valued Customers,

The International Maritime Organisation (IMO) has advised that from 2020, regulation for sulphur content in fuel oil will be tightened, to reduce the amount of sulphur oxide emitting from Ships. This will be implemented to improve major health and environmental benefits for the world, mainly for populations living close to the coasts and ports. The IMO has set regulation to limit sulphur content in oil to less than 0.5%, which will take effect from next year. Currently the global limit for sulphur content in fuel oil is 3.5%.

Following on from this, Shipping lines operating in an out of New Zealand will be introducing a Low Sulphur Surcharge, for both FCL and LCL shipments. This is being introduced to cover the cost differential between Low Sulphur and Heavy Sulphur Fuels.

This new surcharge will be introduced effective 1st December 2019.

The Low Sulphur Surcharge rates will vary based on transits, distance travelled, and Sulphur consumed upon the journey and we would see the levy range from US $84 – 326 per TEU on FCL consignments & US $4.00 – 16.00 per cbm on LCL consignments.

For the introduction of IMO 2020 charges the carriers unfortunately initially have no common pricing format, or charge levels. BRi is working to provide as seamless an implementation of these unavoidable surcharges for our clients as possible, however while we anticipate that in a short period of time the carriers will adopt a homogenized approach toward IMO 2020 pricing, it is our expectation that in the initial phase, accurately organizing charges from the carriers will be difficult.

BRi will continue to provide updates regarding the IMO 2020 initiative on an ongoing basis in the interest of keeping our customers abreast of developments as they occur.

Feel free to contact your BRi Customer Solutions Representative, should you have any further queries or concerns in relation to this matter.

Keeping you updated,

BR International

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