​​​​​​​​​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 

December 2017 MGO BAF including spread adjustment: ​

November 2017December 2017
Route€/Lnm£/Lnm€/Lnm£/Lnm
Copenhagen-Oslo€/Lnm£/LnmNovember 20171,641,46December 20171,981,76
Amsterdam-Newcastle€/Lnm£/LnmNovember 20171,641,46December 20171,981,76
Gothenburg-Brevik €/Lnm£/LnmNovember 20172,282,02December 20172,752,44
Gothenburg-Immingham €/Lnm£/LnmNovember 20172,282,02December 20172,752,44
Gothenburg-Ghent €/Lnm£/LnmNovember 20172,121,88December 20172,562,27
Cuxhaven-Immingham€/Lnm£/LnmNovember 20171,741,54December 20172,091,86
Esbjerg-Immingham €/Lnm£/LnmNovember 20171,641,46December 20171,981,76
Rotterdam(Vlaardingen)-Felixstowe €/Lnm£/LnmNovember 20170,620,55December 20170,740,66
Rotterdam(Vlaardingen)- Immingham €/Lnm£/LnmNovember 20171,100,97December 20171,321,17
Rosyth-Zeebrugge €/Lnm£/LnmNovember 20173,142,79December 20173,783,36
Klaipeda - Fredericia €/Lnm£/LnmNovember 20171,921,71December 20172,322,06
Klaipeda - Karlshamn€/Lnm£/LnmNovember 20171,511,34December 20171,811,61
Klaipeda - Kiel€/Lnm£/LnmNovember 20173,002,66December 20173,623,21
Kiel - St.Petersburg€/Lnm£/LnmNovember 20173,973,53December 20174,794,25
Paldiski - Kapellskär€/Lnm£/LnmNovember 20171,181,05December 20171,421,26
Paldiski - Hanko€/Lnm£/LnmNovember 20170,740,66December 20170,890,79
Dover - Dunkirk€/Lnm£/LnmNovember 20170,480,43December 20170,580,51
Dover-Calais€/Lnm£/LnmNovember 20170,480,43December 20170,580,51
Brevik-Ghent €/Lnm£/LnmNovember 20172,121,88December 20172,562,27
Brevik-Immingham€/Lnm£/LnmNovember 20172,282,02December 20172,752,44

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​/09-20/1020/10-20/11
The average price of 0,1% MGO, USD USD 507,87USD 523,82
The exchange rate of USD/EUR1,18081,1693
The average price of 0,1% MGO, EUREUR 430,10EUR 447,99
The price variance of 0,1% MGO, EUR EUR 24,80EUR 17,88

 

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