ONE joins rivals’ bunker surcharge strategy
OCEAN Network Express has become the latest container line to reveal details of its revised pricing mechanism for customers ahead of the 2020 sulphur cap.
From January 1, 2020, regulation enforced by the International Maritime Organization will restrict commercial vessels from burning bunker fuel with a sulphur content of 0.5%
ONE joins other box carriers, including Maersk Line, CMA CGM and Mediterranean Shipping Co, in announcing new bunker surcharges to share the cost burden across the supply chain.
ONE will also follow its competitors in introducing its new pricing strategy from the beginning of 2019, a move it deems necessary due to “preparatory adjustments in advance of the implementation date”.
The company said it identified adopting low-sulphur compliant hybrid oil, which has a 0.5% sulphur content, as the most realistic and cost-efficient short-term solution available.
Burning low-sulphur fuels is one of several options available to carriers in meeting emission guidelines, in addition to alternate propulsion methods such as liquefied natural gas, exhaust-cleaning scrubbers, and the use of marine gasoil and distillates.
ONE said it was “carefully considering” other solutions, which might be employed in the future.
The carrier has looked to adopt a similar pricing strategy to MSC and CMA CGM, which announced their own mechanisms, using an index that takes into account the fuel price, load factors and trade imbalances.
One said the new pricing system, called the ‘ONE Bunker Surcharge’, will be applied to all new contracts until further notice, while existing contracts will incorporate the existing BAF mechanism until expiry.
10 December 2018