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MSC low-sulphur fuel levy US$15/TEU Asia-Europe, but $165/TEU to Montreal

THE Mediterranean Shipping Co (MSC) will levy a low sulphur fuel surcharge from January 1 when European and North American authorities enforce UN emission control zone rules, which compel the use of low-sulphur fuel, 60 per cent more expensive than bunker.

"To recover this increase in fuel cost, MSC will be compelled to apply an ECA charge from the first January. This extra cost, which will be paid by shippers and receivers, has been calculated by trade." said MSC, the world's No 2 container shipping line after Maersk. 



The Swiss-Italian line's charges are based on a sliding scale depending how long cargo must transit emission control zones. 



Asia to north western European ports surcharges are the lightest at US$15 per TEU into north western European ports, but higher in longer transit deep into the zone to Baltic ports where the charge rises to $70 per TEU.



The highest charges are between northern and Europe and Montreal, which is 1,000 miles through the Canadian control zone to the open sea. These run from $165 per TEU from a Baltic port to $110 to western Europe, were there is less control zone to traverse. 
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