​​​​​​​​​DFDS Seaways Marine Gas Oil bunker adjustment factor (BAF) policy

New rules on 1 January 2015

On 1 January 2015, the EU Sulphur Directive 2012/33/EU will bring about a major reduction in sulphur dioxide emission from ships, and that will heavily impact shipping in northern Europe. The Directive will require ships sailing in the English Channel, the North Sea and the Baltic Sea (the North European emission control area) to use bunker oil with a maximum 0.1% sulphur or apply alternative methods in order to achieve the same effect.

What will be the consequences?

The fuel with 0.1% sulphur content is the marine gas oil (MGO), which is significantly more expensive than heavy fuel oil (HFO) with 1% sulphur, which is currently allowed and commonly used inside the North European ECA. As a result, fuel prices will increase and so will the costs of shipping. It has been estimated that ships trading within this area consume around 13,000,000 tons of HFO per year. Switching this to 0.1% MGO would mean an extra cost of about EUR 3 billion per year. It is entirely up to the shipping industry to cover this extra cost.

Based on the above we have from 1 January 2015 introduced the new DFDS Seaways MGO BAF.

Find more information on the BAF policy here 

July 2017 MGO BAF including spread adjustment: ​

June 2017July 2017
Route€/Lnm£/Lnm€/Lnm£/Lnm
Copenhagen-Oslo€/Lnm£/LnmJune 20171,040,88July 20170,890,78
Amsterdam-Newcastle €/Lnm£/LnmJune 20171,040,88July 20170,890,78
Brevik-Immingham€/Lnm£/LnmJune 20171,441,22July 20171,231,08
Gothenburg-Brevik €/Lnm£/LnmJune 20171,441,22July 20171,231,08
Gothenburg-Immingham €/Lnm£/LnmJune 20171,441,22July 20171,231,08
Cuxhaven-Immingham€/Lnm£/LnmJune 20171,100,93July 20170,940,82
Esbjerg-Immingham €/Lnm£/LnmJune 20171,040,88July 20170,890,78
Rotterdam(Vlaardingen)-Felixstowe €/Lnm£/LnmJune 20170,390,33July 20170,330,29
Rotterdam(Vlaardingen)- Immingham €/Lnm£/LnmJune 20170,690,59July 20170,590,52
Rosyth-Zeebrugge €/Lnm£/LnmJune 20171,981,68July 20171,701,48
Klaipeda - Fredericia €/Lnm£/LnmJune 20171,211,03July 20171,040,91
Klaipeda - Karlshamn€/Lnm£/LnmJune 20170,950,81July 20170,820,71
Klaipeda - Kiel€/Lnm£/LnmJune 20171,891,60July 20171,631,42
Kiel - Ust-Luga€/Lnm£/LnmJune 20172,512,12July 20172,151,88
Paldiski - Kapellskär€/Lnm£/LnmJune 20170,750,63July 20170,640,56
Paldiski - Hanko€/Lnm£/LnmJune 20170,470,40July 20170,400,35
Dover - Dunkirk€/Lnm£/LnmJune 20170,300,26July 20170,260,23
Dover-Calais€/Lnm£/LnmJune 20170,300,26July 20170,260,23
Kiel - St.Petersburg€/Lnm£/LnmJune 20172,512,12July 20172,151,88
Gothenburg-Ghent €/Lnm£/LnmJune 20171,341,14July 20171,151,00
Brevik-Ghent €/Lnm£/LnmJune 20171,341,14July 20171,151,00

The BAF surcharge for each route is adjusted each month based on the average price of 0,1% MGO and the spread towards 3.5% HFO. See details below for the current period.

 

Measured period 20​/04-20/0520/05-20/06
The average price of 0,1% MGO, USD USD 425,81USD 423,18
The exchange rate of USD/EUR1,09291,1206
The average price of 0,1% MGO, EUREUR 389,62EUR 377,63
The price variance of 0,1% MGO, EUR -EUR 28,13-EUR 11,99

 

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