Hong Kong's Orient Overseas Container Line (OOCL) as expected has joined other carriers in announcing bunker surcharges to comply with European and North American low sulphur fuel mandate from January.

The increases, to be reviewed monthly, will be as follows: Europe to/from USEC/Gulf and Mexico will be US$65 per TEU and $130 per FEU; Europe to/from USWC will be $110 per TEU and $220 per FEU and Europe to/from Canada will be $75 per TEU and $150 per FEU.

"We have taken steps to update our Bunker Adjustment Formula (BAF) to include, for simplification purposes, the costs related to the use of the new low sulphur marine gas oil (LSMGO) requirements," said the OOCL statement.

"We understand that there will be a number of customers that would still prefer BAF-inclusive rates instead of the new BAF surcharge being applied as a separate part of the pricing structure.

"To meet this requirement, we would like to take this opportunity to notify customers that OOCL will introduce a low sulphur surcharge for all BAF-inclusive contracts from January 1," the statement said.

"For customers who prefer BAF as a separate surcharge, the costs associated to the use of the new LSMGO is included in the BAF formula," the company said.