Crowley VFI (Vessel Fuel Index)

The International Maritime Organization (IMO) is implementing new regulations on January 1, 2020, which further reduce sulfur content requirements of marine fuel from 3.5% to 0.5% for vessels operating outside of designated Emission Control Areas (ECAs). Within the North American, Puerto Rico & USVI Emission Control Areas (ECAs), sulfur content will remain at 0.1% as was previous established on January 1, 2015. Additional information regarding these regulations can be found on the IMO website.

To ensure compliance with these new regulations, Crowley will begin sourcing low sulfur fuel in the applicable international theaters effective November 1, 2019. Therefore, with the upcoming review of mid-August to mid-September 2019, Crowley will transition to monitoring the price of low sulfur fuel against the current index. Until compliant 0.5% is available in sufficient quantities and compatibility testing has been confirmed, the low sulfur fuel type monitored and sourced will be 0.1% ultra-low sulfur fuel. These regulatory fuel requirements will result in substantially higher fuel costs.

Crowley has begun using Bunkerworld.com to monitor the average monthly price per metric ton of the current 3.5% sulfur IFO 380 fuel burned in international trades, and will use the same source to subsequently monitor the price of 0.1% and 0.5% low sulfur fuel. These averages are used in conjunction with the Vessel Fuel Index (VFI) table below to determine adjustments in fuel charges.

As of October 15th, the average fuel price of 0.1% sulfur MGO over the previous 30 days was $621 per metric ton. Therefore, effective December 1st 2019, fuel charges will adjust to the amounts set forth in the $600 to $649 per metric ton tier on the table below.

We will continue to monitor fuel prices over the next month, and make adjustments when necessary. 

Vessel Fuel Charge Index

Price Range – Per Metric Ton

 

Vessel Fuel Surcharge Prices

From

To

VEH

20′

20′ RE

40′

40′ NOR

40′ RE

45′

45′ RE

NIT

$0 $199 $21 $100 $130 $200 $200 $260 $225 $293 $200
$200 $249 $27 $125 $163 $250 $250 $325 $281 $366 $250
$250 $299 $33 $150 $195 $300 $300 $390 $338 $439 $300
$300 $349 $39 $175 $228 $350 $350 $455 $394 $512 $350
$350 $399 $45 $200 $260 $400 $400 $520 $450 $585 $400
$400 $449 $51 $225 $293 $450 $450 $585 $506 $658 $450
$450 $499 $57 $250 $325 $500 $500 $650 $563 $731 $500
$500 $549 $63 $275 $358 $550 $550 $715 $619 $804 $550
$550 $599 $69 $300 $390 $600 $600 $780 $675 $878 $600
$600 $649 $75 $325 $423 $650 $650 $845 $731 $951 $650
$650 $699 $81 $350 $455 $700 $700 $910 $788 $1,024 $700
$700 $749 $87 $375 $488 $750 $750 $975 $844 $1,097 $750
$750 $799 $93 $400 $520 $800 $800 $1,040 $900 $1,170 $800
$800 $849 $99 $425 $553 $850 $850 $1,105 $956 $1,243 $850
$850 $899 $105 $450 $585 $900 $900 $1,170 $1,013 $1,316 $900
$900 $949 $111 $475 $618 $950 $950 $1,235 $1,069 $1,389 $950
$950 $999 $117 $500 $650 $1,000 $1,000 $1,300 $1,125 $1,463 $1,000
$1,000 $1,049 $123 $525 $683 $1,050 $1,050 $1,365 $1,181 $1,536 $1,050
$1,050 $1,099 $129 $550 $715 $1,100 $1,100 $1,430 $1,238 $1,609 $1,100
$1,100 $1,149 $135 $575 $748 $1,150 $1,150 $1,495 $1,294 $1,682 $1,150
$1,150 $1,199 $141 $600 $780 $1,200 $1,200 $1,560 $1,350 $1,755 $1,200
$1,200 $1,249 $147 $625 $813 $1,250 $1,250 $1,625 $1,406 $1,828 $1,250
$1,250 $1,299 $153 $650 $845 $1,300 $1,300 $1,690 $1,463 $1,901 $1,300
$1,300 $1,349 $159 $675 $878 $1,350 $1,350 $1,755 $1,519 $1,974 $1,350

* Abbreviated scale. Will continue past $1301/MT