COSCO Announcement of New Bunker Surcharge
In response to the IMO 2020 low sulphur policy, COSCO SHIPPING Lines is going to introduce a new bunker surcharge from December 1st, 2019 aiming at reasonably compensating the soaring bunker costs.
I. Bunker Surcharge Pattern
COSCO SHIPPING Lines will adopt different bunker surcharge pattern according to the validity of contracts. BUC (Bunker Charge) applies to long-term contracts, while FAF (Fuel Adjustment Fee) applies to short-term contracts.
II. Definition of Long-term and Short-term Contract
U.S. and Atlantic trades apply to long-term contract pattern and the surcharge BUC.
For other trades, according to its rate validity, shall respectively apply to short-term contracts pattern (validity ≤ 3 months) with FAF and long-term contract pattern (validity＞3 months) with BUC.
III. Adjustment Mechanism
Bunker price will be reviewed at monthly interval. A fluctuation over USD25 will trigger the adjustment. (Please contact trade division concerned for more details.)