​​​​​​​​​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 

April 2017 MGO BAF including spread adjustment: ​

March 2017April 2017
Route€/Lnm£/Lnm€/Lnm£/Lnm
Copenhagen-Oslo€/Lnm£/LnmMarch 20171,811,55April 20171,651,42
Amsterdam-Newcastle €/Lnm£/LnmMarch 20171,811,55April 20171,651,42
Gothenburg-Brevik €/Lnm£/LnmMarch 20172,512,15April 20172,291,97
Gothenburg-Immingham €/Lnm£/LnmMarch 20172,512,15April 20172,291,97
Gothenburg-Ghent €/Lnm£/LnmMarch 20172,342,00April 20172,131,84
Cuxhaven-Immingham€/Lnm£/LnmMarch 20171,911,63April 20171,751,50
Esbjerg-Immingham €/Lnm£/LnmMarch 20171,811,55April 20171,651,42
Rotterdam(Vlaardingen)-Felixstowe €/Lnm£/LnmMarch 20170,680,58April 20170,620,53
Rotterdam(Vlaardingen)- Immingham €/Lnm£/LnmMarch 20171,211,03April 20171,100,95
Rosyth-Zeebrugge €/Lnm£/LnmMarch 20173,452,95April 20173,152,72
Klaipeda - Fredericia €/Lnm£/LnmMarch 20172,121,81April 20171,931,67
Klaipeda - Karlshamn€/Lnm£/LnmMarch 20171,661,42April 20171,511,30
Klaipeda - Kiel€/Lnm£/LnmMarch 20173,302,83April 20173,022,60
Kiel - St.Petersburg€/Lnm£/LnmMarch 20171,441,23April 20171,311,13
Kiel - Ust-Luga€/Lnm£/LnmMarch 20171,441,23April 20171,311,13
Paldiski - Kapellskär€/Lnm£/LnmMarch 20171,301,11April 20171,191,02
Paldiski - Hanko€/Lnm£/LnmMarch 20170,820,70April 20170,750,64
Dover - Dunkirk€/Lnm£/LnmMarch 20170,530,45April 20170,480,42
Dover-Calais€/Lnm£/LnmMarch 20170,530,45April 20170,480,42
Brevik-Immingham€/Lnm£/LnmMarch 20172,512,15April 20172,291,97
Brevik-Ghent €/Lnm£/LnmMarch 20172,342,00April 20172,131,84

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​/01-20/0220/02-20/03
The average price of 0,1% MGO, USD USD 468,91USD 456,57
The exchange rate of USD/EUR1,06841,0603
The average price of 0,1% MGO, EUREUR 438,90EUR 430​,62
The price variance of 0,1% MGO, EUR EUR -0,20-EUR 8,28

 

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