As component of a collection of campaigns focused on bringing higher openness to sustain expenses arising from the brand-new IMO 2020 low-sulphur policy, Drewry delights in to introduce the magazine of its initial low-sulphur referral shelter index tracker.

In current months, both carriers and also forwarders have actually revealed complication and also worry over the timing and also openness of the brand-new fees being presented by service providers as they change from IFO 380 (intermediate gas oil) to the brand-new, low-sulphur gas requirement.

Drewry’s brand-new low-sulphur BAF index, which will certainly be upgraded quarterly, gives a straightforward indexing device to assist identify adjustments in BAF fees throughout the life time of an agreement.

Representation Image– Credits: ec.europa.eu

“Our new low-sulphur bunker price tracker is intended to standardise, clarify and simplify the adjustment of Bunker Adjustment Factors (BAFs) between shippers and carriers or forwarders,” claimed Philip Damas, head ofDrewry Supply Chain Advisors “By streamlining the process and agreeing common bunker price measurement periods, BAF adjustment periods, fuel prices and index formulae, we hope to bring much needed clarity to the challenges presented by the regulatory change.”

Working with the European Shipper’s Council (ESC), Drewry has actually currently specified and also released a streamlined BAF indexing device and also shelter cost overview to assist carriers check and also regulate shelter fees, which was prepared by the ESC-Drewry IMO toolkit referral team, that were entrusted with event sights and also finest techniques on IMO 2020 low-sulphur fuel-related subjects.

“As was anticipated, prices for low-sulphur fuel appear to have settled some 35% higher than the old IFO 380 fuel standard,” claimedMr Damas “Although temporary and transitional bunker charges were expected to apply to just spot rates and to contracts of less than three months, it is clear that some shippers with annual ocean freight contracts have been requested by their carriers to start paying the new IMO BAF from 1st December.”

“While uncertainty remains in the market, some carriers may choose to reduce their base rates and charge the ‘full BAF’ in their next contracts,” proceededMr Damas “We will continue to closely monitor and report future developments.”

Through subscription of Drewry’s Benchmarking Club, merchants and also importers have accessibility to typical agreement shelter fees by tradelane, upgraded by Drewry as soon as a month.

Try the first low-sulphur reference bunker index tracker

Reference: drewry.co.uk