Doubling in prices on new fuels could impact shippers

In the past three months, the price on new low-sulfur fuels has risen markedly, which could lead to container lines implementing higher fuel surcharges if the trend continues, assesses analyst firm Sea-Intelligence.

Photo: Maersk - PR

Container shipping companies' expenses for the new low-sulfur fuels have increased markedly these past three months, leaving carriers with a bigger bill for the transition to observing the new IMO requirements. If this trend continues, it could lead to liner companies implementing higher so-called bunker adjustment factor (BAF) surcharges, according to analyst firm Sea-Intelligence.

"If the rapid escalation of the premium continues, shippers should prepare themselves for further strong BAF increases already in Q2," writes Sea-Intelligence.

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