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MSC follows suit with new bunker adjustment factor

Starting at the turn of the year, liner shipping company MSC will introduce a new bunker adjustment factor for customers, which will account for the rising fuel costs triggered by the upcoming 2020 global sulfur cap.

Photo: Aarhus Havn

The world's second-largest liner shipping company, MSC, now follows on the heels of Maersk Line and CMA CGM by introducing a new bunker adjustment factor, BAF, to account for the increased fuel costs resulting from the upcoming sulfur regulations.

Starting Jan. 1, 2020, ships must either sail on low-sulfur fuel oil or install scrubbers to clean their exhaust. This is expected to trigger extra costs for the shipping companies, which the customers will help cover. MSC expects to spend more than USD 2 billion to ensure compliance with the regulations.

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