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MSC readies for additional costs from Sulphur 2020 

MSC Mediterranean Shipping Company has estimated that the various changes it is making to comply with the International Maritime Organization’s (IMO) Sulphur 2020 regulations will cost the shipping line in excess of USD2 billion per year. 

MSC added that it is already starting to incur these costs in order to be ready for the 2020 deadline.  

The shipping line added: “We believe that it is essential to segregate transparently the burden of fuel costs, in order for this cost to be passed on visibly throughout the supply chain. Passing on that cost is also vital to ensure the sustainable future of the container shipping industry.” 

In September, MSC announced that it will introduce new bunker charges as of January 1, 2019. After analysing operating costs and related market factors, MSC has established a new price mechanism - the bunker recovery charge (BRC) - which it claims will be transparent for the respective trades. 

“It will reflect the true additional cost that MSC will incur as a result of the regulatory changes we all support in order to protect the environment,” said MSC. 

BRC replaces the current bunker contribution (BUC), fuel adjustment factor (FAD) and emergency fuel surcharge (EFS), and largely absorbs other pre-existing fuel-related charges. Charges specifically related to coastal emission control areas (ECA) will remain in place. 

www.msc.com 

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