MSC, CLS surcharge from China to the world

From 1 October 2018, China’s Maritime Safety Administration (MSA) requires vessels operating in the Yangtze River Delta to use low-Sulphur fuel not exceeding 0.5% of Sulphur level, in order to minimize emissions of Sulphur oxides from ships.

Consequently, MSC will apply a China Low Sulphur (CLS) surcharge to all cargoes outbound ex/via Shanghai & Ningbo to all destinations worldwide.

The quantum is USD 20 per 20’ & USD 40 per 40’ with effect as from 2 December (Bill of Lading Date) until further notice.

Please note that for EEA destinations*, this surcharge is an additional charge and that all other charges listed in MSC’s EU Price Announcements still apply and remain unchanged. For your reference, we have inserted below a relevant extract of our EU Price Announcement valid as from 15 November 2018 until further notice.

EU PRICE ANNOUNCEMENT

• These FAK rates are inclusive of base rate (i.e. Ocean freight rate), Suez Canal Surcharges (SCS), Bunker Surcharge (BUC), Currency Adjustment Factor (CAF), Piracy Risk Surcharges (PRS) and Peak Season Surcharge (PSS).
• These FAK rates are subject to the Fuel Adjustment Contribution (FAD) currently at USD 65/TEU (effective since 15th October) quantum to be increased to USD 100/TEU as from 1st December 2018,till further notice.
• For Antwerp, FAK rates are subject to ECA of 15 USD/TEU.
• These FAK rates exclude all IMO category commodities and high value commodities.

*Europe Economic Area (EEA) includes:
Member States of the European Union (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom) including their Outermost Regions (Guadeloupe, French Guiana, Reunion, Martinique, Mayotte and Saint-Martin (France), the Azores and Madeira (Portugal), and the Canary Islands (Spain)) + Norway, Liechtenstein, Iceland.