CMA CGM to introduce new BAF on Europe-Africa trade
CMA CGM will introduce a new quarterly Bunker Adjustment Formula (BAF) for long term contracts starting from 1st of January 2019, the company said in its press release.
This new quarterly BAF will be applied for all contracts with validity period above 3 months starting as from January 1st, 2019.
Below table is only given as an example of BAF quantums per container size. Official BAF tariffs for Europe to Africa trade will be communicated at a later stage as per applicable regulations.
IFO 380 price is the reference for Europe-Africa Bunker Adjustment Formula. CMA CGM is using one single IFO 380 reference for all trades, below is the weight of each port worldwide: 40% Rotterdam IF0 380, 50% Singapore IFO 380, 10% Houston IFO 380.
As from the second half of 2019, to be compliant with the IMO regulations effective on January 1st, 2020, CMA CGM will start bunkering the new LSFO 0,5% sulfur at a cost that is unknown for time being. The adjustment falling into 2020 will therefore be based on the variation between the average cost of one ton of IFO and the average cost of one ton of LSFO 0.5% at the date of review.