​​​​​​​​​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 

March 2017 MGO BAF including spread adjustment: ​

February 2017March 2017
Route€/Lnm£/Lnm€/Lnm£/Lnm
Copenhagen-Oslo€/Lnm£/LnmFebruary 20171,891,62March 20171,811,55
Amsterdam-Newcastle €/Lnm£/LnmFebruary 20171,891,62March 20171,811,55
Gothenburg-Immingham €/Lnm£/LnmFebruary 20172,622,25March 20172,512,15
Gothenburg-Ghent €/Lnm£/LnmFebruary 20172,442,10March 20172,342,00
Cuxhaven-Immingham€/Lnm£/LnmFebruary 20172,001,71March 20171,911,63
Esbjerg-Immingham €/Lnm£/LnmFebruary 20171,891,62March 20171,811,55
Rotterdam(Vlaardingen)-Felixstowe €/Lnm£/LnmFebruary 20170,710,61March 20170,680,58
Rotterdam(Vlaardingen)- Immingham €/Lnm£/LnmFebruary 20171,261,08March 20171,211,03
Rosyth-Zeebrugge €/Lnm£/LnmFebruary 20173,613,10March 20173,452,95
Klaipeda - Fredericia €/Lnm£/LnmFebruary 20172,211,90March 20172,121,81
Klaipeda - Karlshamn€/Lnm£/LnmFebruary 20171,731,49March 20171,661,42
Klaipeda - Kiel€/Lnm£/LnmFebruary 20173,452,96March 20173,302,83
Kiel - St.Petersburg€/Lnm£/LnmFebruary 20171,501,29March 20171,441,23
Kiel - Ust-Luga€/Lnm£/LnmFebruary 20171,501,29March 20171,441,23
Paldiski - Kapellskär€/Lnm£/LnmFebruary 20171,361,17March 20171,301,11
Paldiski - Hanko€/Lnm£/LnmFebruary 20170,850,73March 20170,820,70
Dover - Dunkirk€/Lnm£/LnmFebruary 20170,550,48March 20170,530,45
Dover-Calais€/Lnm£/LnmFebruary 20170,550,48March 20170,530,45
Gothenburg-Brevik €/Lnm£/LnmFebruary 20172,622,25March 20172,512,15
Brevik-Immingham€/Lnm£/LnmFebruary 20172,622,25March 20172,512,15
Brevik-Ghent €/Lnm£/LnmFebruary 20172,442,10March 20172,342,00

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 21​​/12-20/0120/01-20/02
The average price of 0,1% MGO, USD USD 462,13USD 468,91
The exchange rate of USD/EUR1,05241,0684
The average price of 0,1% MGO, EUREUR 439,11EUR 438​,90
The price variance of 0,1% MGO, EUR EUR 26,77-EUR 0,20

 

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