​​​​​​​​​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 

October 2017 MGO BAF including spread adjustment: ​

September 2017October 2017
Route€/Lnm£/Lnm€/Lnm£/Lnm
Copenhagen-Oslo€/Lnm£/LnmSeptember 20171,030,93October 20171,251,14
Amsterdam-Newcastle €/Lnm£/LnmSeptember 20171,030,93October 20171,251,14
Gothenburg-Immingham €/Lnm£/LnmSeptember 20171,431,29October 20171,741,58
Brevik-Immingham€/Lnm£/LnmSeptember 20171,431,29October 20171,741,58
Gothenburg-Ghent €/Lnm£/LnmSeptember 20171,331,20October 20171,621,47
Cuxhaven-Immingham€/Lnm£/LnmSeptember 20171,090,98October 20171,321,20
Esbjerg-Immingham €/Lnm£/LnmSeptember 20171,030,93October 20171,251,14
Rotterdam(Vlaardingen)-Felixstowe €/Lnm£/LnmSeptember 20170,390,35October 20170,470,43
Rotterdam(Vlaardingen)- Immingham €/Lnm£/LnmSeptember 20170,690,62October 20170,840,76
Rosyth-Zeebrugge €/Lnm£/LnmSeptember 20171,971,78October 20172,392,18
Klaipeda - Fredericia €/Lnm£/LnmSeptember 20171,211,09October 20171,471,34
Klaipeda - Karlshamn€/Lnm£/LnmSeptember 20170,950,85October 20171,151,05
Klaipeda - Kiel€/Lnm£/LnmSeptember 20171,891,70October 20172,292,08
Kiel - St.Petersburg€/Lnm£/LnmSeptember 20172,502,25October 20173,032,76
Kiel - Ust-Luga€/Lnm£/LnmSeptember 20172,502,25October 20173,032,76
Paldiski - Kapellskär€/Lnm£/LnmSeptember 20170,740,67October 20170,900,82
Paldiski - Hanko€/Lnm£/LnmSeptember 20170,470,42October 20170,570,52
Dover - Dunkirk€/Lnm£/LnmSeptember 20170,300,27October 20170,370,33
Dover-Calais€/Lnm£/LnmSeptember 20170,300,27October 20170,370,33
Gothenburg-Brevik €/Lnm£/LnmSeptember 20171,431,29October 20171,741,58
Brevik-Ghent €/Lnm£/LnmSeptember 20171,331,20October 20171,621,47

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​/07-20/0820/08-20/09
The average price of 0,1% MGO, USD USD 456,95USD 482,87
The exchange rate of USD/EUR1,17351,1914
The average price of 0,1% MGO, EUREUR 389,41EUR 405,30
The price variance of 0,1% MGO, EUR EUR 23,46EUR 15,89

 

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