CMA CGM has joined Maersk in announcing plans to use surcharges to offset the cost of bunkering compliant fuels once the 2020 sulphur cap is in force.
Based on current conditions, the French container shipping firm has estimated that the additional cost of compliance will be around $160 per TEU. Its fuel surcharges will be calculated and levelled on a trade-by-trade basis.
The majority of vessels in CMA CGM’s fleet will switch to 0.5 per cent sulphur fuel come 1 January 2020, though the company does have nine LNG-fuelled container ships on order, as well as a handful of scrubbers.
CMA CGM’s announcement comes as major shipping companies are increasingly making their compliance strategies public. MSC – the world’s second-largest shipping line in terms of vessel capacity – has also revealed plans to introduce a surcharge effective 1 January 2019.
“The new MSC Global Fuel Surcharge will replace existing bunker surcharge mechanisms and will reflect a combination of fuel prices at bunkering ports around the world and specific line costs such as transit times, fuel efficiency and other trade-related factors,” says a statement from the company.
MSC believes that the cost of changing its fleet’s propulsion infrastructure and fuel supply chain is in excess of $2bn per year.