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International Shipping
MSC: Customers accept low-sulphur fuel surcharges as they see eco benefits
Date:2014-12-26 Readers:

The Mediterranean Shipping Co (MSC) says most of its customers are accepting low-sulphur fuel surcharges levied to cover the added cost of fuel in emission control areas (ECA) of North America, English Channel, the North and Baltic seas from January 1.


Most customers recognise the environmental benefits of cleaner fuel and so are not questioning the extra charges, an MSC spokesman told Lloyd's List.


MSC, which estimates an extra US$250 million more in fuel will be consumed because of UN regulation to be offset by surcharges in the $50 to $85 per TEU range depending on how long cargo transits ECAs.


The new rules have caused controversy within the shipping industry, and particularly in the shortsea sector where operators are warning that the higher costs will drive freight back onto the roads.


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