Crowley Fuel Index: IMO2020 – September Update
As previously communicated, 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 current fuel cost review of mid-August to mid-September 2019, Crowley has transitioned to monitoring the average price of low sulfur fuel against the 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 or MGO.
The average price per Bunkerworld.com is used in conjunction with the Vessel Fuel Index (VFI), available online here, to determine adjustments in fuel charges.
As of September 15th, the average fuel price of 0.1% sulfur MGO over the previous 30 days was $589 per metric ton. Therefore, effective November 1st 2019, fuel charges will adjust to the amounts set forth in the $550 to $599 per metric ton tier on the table shown here.
(Note: This index WILL NOT apply on shipments between the U.S. and Puerto Rico, where a separate Puerto Rico Vessel Fuel Index is currently in effect.)
We will continue to monitor fuel prices over the next month, and make adjustments when necessary.
If you have any questions please, contact your sales representative or the Customer Care Department at 1-800-CROWLEY.