Unifeeder to introduce a SECA surcharge of EUR 65 per loaded TEU from 1st January 2015
Unifeeder will introduce a SECA surcharge of EUR 65 per loaded TEU for all its Shortsea clients, the company said in its press release. This will come into effect in line with new legislation on the 1st January 2015. The surcharge equals Unifeeder’s cost increase of switching to MGO instead of IFO LS based on current cost levels and indications from the bunker market and has been calculated as follows: [Total IFO LS fuel consumption in tonnes x price increase per tonne / loaded TEUs]. Should the level of MGO move significantly lower or higher than indication received, Unifeeder will in line with other surcharges periodically advise of any changes in the surcharge.
Unifeeder will maintain its existing Bunker Adjustment Factor (BAF) and implement the SECA cost as a separate surcharge.
From 1st January 2015, new EU environmental legislation will take effect which aims at ensuring a substantial reduction in marine sulphur emissions in Northern Europe to the benefit of the environment. This legislation covers a large geographic area extending from the English Channel into the Baltic Sea, termed as the Sulphur Emission Control Area (SECA).
In a nutshell, the EU legislation means that vessels operating in the SECA from 1st January 2015 will be allowed a maximum sulphur content in their fuel of 0.1% compared to today’s limit of 1.0%. Alternatively, the exhaust gas must be cleaned to obtain an equivalent reduction. This legislation originates from the United Nations International Maritime Organisation (IMO).
Transport at sea is already today the most environmentally friendly mode of transport, and the 90% reduction in sulphur emission should encourage shippers to move more cargo away from higher polluting modes of transport and onto the sea.
In Northern Europe, Unifeeder vessels operate exclusively in the SECA. Effectively, Unifeeder must switch from using traditional low sulphur Intermediate Fuel Oil (IFO LS) to Marine Gas Oil (MGO) in order to ensure a reduction from 1.0% to 0.1% sulphur content. This comes at a cost premium, as the more environmentally friendly MGO is approximately 50% more expensive than the current low sulphur IFO.
