WTSA members to levy eco-fuel surcharge as UN emissions mandate bites

THE recent United Nations mandate, requiring vessels to reduce sulphur oxide (SOx) emissions by using costly low-sulphur fuel within 200 miles of the US and Canadian coasts, has led Westbound Transpacific Stabilisation Agreement (WTSA) to levy a surcharge on cargo.

The low-sulphur charge of US$11 per FEU from the west coast and $38 per FEU from the east and Gulf coasts, will be incorporated into WTSA's guideline bunker charge, effective October 1, and will be based on the same 13-week reporting period as the standard bunker charge, and be adjusted on the same effective dates, said the WTSA statement.

The extra charge is based on the average weekly price differences between standard bunker and low-sulphur fuel as reported by Platt's and a weighted average among WTSA carriers' relative daily consumption of the different fuels as well as an average of sailing days within the 200-mile emission control area.

The sister Transpacific Stabilisation Agreement members made a similar announcement earlier.