T.S. LINES NEW BUNKER SURCHARGE “NBAF”
Q & A
1. IMO 2020 regulation will be taking effective from 01-JAN-2020 onwards, why ocean carriers apply NBAF much earlier ?
Ans : Ocean carriers have to clean the fuel tank and switch to LSFO (MGO) in advance to ensure the residual sulfur content inside fuel tank can meet with IMO2020 requirement.
2. Why T.S. Lines take HKG MGO average price as NBAF index?
Ans: The demand of LSFO is expecting to grow severely but not sure the supply will be sufficient in the beginning stage . MGO can be an alternative fuel option to replace LSFO in the worst scenario . We will consider to review and adopt LSFO as the index of NBAF when LSFO supply can be stabilized without any shortage worry.
3. What is MGO?
Ans: MGO is stand for MARINE GAS OIL which is a higher quality of marine fuel with 0.1% Sulphur content.
4. What is the effective date of NBAF?
Ans: Effective date:01-NOV-2019 base on POL ETD.
5. How much NBAF will be charged?
Ans: T.S.Lines segregated Intra Asia trade into 2 groups by sailing distance .
Group 1 (<1200 NM) :USD 40 per TEU
Group 2 (>1200 NM) :USD 70 per TEU
Reefer would be applied with 1.5 times NBAF due to higher consumption of fuel.
Flat Rack, Open Top will be applying the same NBAF tariff with Dry van.
The other trade i.e. Cross Strait, CPRC/JPN, ISC,AUS trade BAF will be announced separately.
6. NBAF SHOULD BE PAY AT POL OR POD?
Ans: Base on freight term, for CIF, NBAF should pay at POL, for FOB, NBAF should be pay at POD.
7. Is NBAF fixed? What would be the mechanism to review and renew ?
Ans: We will review on monthly basis according to the average price of HKG MGO. Set USD 50 as spread of bunker price raise, Group 1 NBAF +/- USD 8 per TEU; Group 2 NBAF +/- 15 per TEU. i.e. Effective of 1st/November NBAF Surcharge will base on average HKG MGO price USD 551-USD 600 of 16th/Aug. to 15th/Sep. period
8. Same quantum of NBAF for all container types?
Ans: Dry, Flat Rack & Open Top are all applying the standard NBAF as per table but Reefer will be applying 1.5 time of NBAF.
9. Is NBAF charged for all trade?
Ans: Yes. We will apply NBAF for all trade . For some corridors which yet to show on our table i.e. Cross Strait, CPRC/JPN, ISC,AUS trade BAF would be announced separately.