On 1st January 2020, the International Maritime Organization (IMO) will implement a new global sulphur cap for marine fuel oil in order to reduce Sulphur Oxides (SOx) emissions from ships. According to this new IMO 2020 Sulphur regulation, the sulphur content of marine fuel oil will have to be capped within 0.5% against current limit of 3.5%. The followings are outlines of Wan Hai Lines revised bunker SURCHARGE mechanism:
Name of the SURCHARGE: WBS
Application for WBS: All areas as stipulated in the WBS Matrix Table stated herein.
Mechanism: WBS will be computed on quarterly basis according to average low Sulphur fuel price taken from 60% Hong Kong and 40% Singapore respectively for the preceding 3 months period with an addition of 1 month pre-notice before implementation.
WBS Quantum: Period 1 will apply the LSFO price between $500.01~550.