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 brought 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 are 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 increased and so did 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 means 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 introduced the new DFDS Seaways MGO BAF from 1 January 2015.
Find more information on the BAF policy here
March 2018 MGO BAF including spread adjustment:
|Rotterdam(Vlaardingen)- Immingham ||1,32||1,17||1,10||0,97|
|Klaipeda - Fredericia ||2,76||2,45||2,31||2,03|
|Klaipeda - Karlshamn||2,35||2,08||1,96||1,73|
|Klaipeda - Kiel||4,14||3,67||3,46||3,05|
|Kiel - St.Petersburg||7,09||6,29||5,92||5,22|
|Paldiski - Kapellskär||1,71||1,51||1,43||1,26|
|Paldiski - Hanko||0,92||0,81||0,76||0,67|
|Dover - Dunkirk||0,75||0,66||0,63||0,55|
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.
|The average price of 0,1% MGO, USD||USD 584,70||USD 569,09|
|The exchange rate of USD/EUR||1,2041||1,2372|
|The average price of 0,1% MGO, EUR||EUR 485,57||EUR 460,00|
|The price variance of 0,1% MGO, EUR||EUR 27,41||- EUR 25,57|