ONE revises bunker surcharge

ONE revises bunker surcharge

Ocean Network Express (ONE) has decided to implement a revised bunker surcharge with effect from January 1, 2019.

The new OBS (ONE Bunker Surcharge) will apply on all new contracts which commence on January 1, 2019 and to be valid till further notice. Existing contracts will still be subject to the previous bunker adjustment factor (BAF) mechanism and remain so until the contract expires.

The new OBS mechanism will be calculated as below:

New OBS = Fuel Price x Trade wise Loading Factor x Trade imbalance

Fuel price will be calculated based on past 3 months average bunker price in key bunkering ports.

ONE has said that it following exhaustive studies, it has identified that adopting low-sulphur compliant hybrid oil with 0.5 per cent sulphur content is the most realistic and cost-efficient, short term solution for compliance with the 2020 regulation.

The company is also considering other possible solutions such as scrubbers and liquefied natural gas (LNG), which may be employed in the future.

ONE expects to start bunkering 0.5 per cent fuel from Q4 2019.