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MARPOL fuel surcharge effective from 19.5.2006

Finland has ratified the MARPOL 73/78 convention issued by UN International Maritime Organization (IMO).
The aim of this convention is to control harmful emissions of exhausts from vessels. This new regulation covers the Baltic Sea with effect from 19 May 2006 and North Sea with effect from 21 November 2007.
The practical restriction is that vessels can only use low-sulphur fuel (1.5 %) instead of the present fuel with the highest allowed sulphur content of 4.5 %.
As from 19 May 2006 shipping lines calling MARPOL area in the Baltic are forced to start using 1.5 % fuel, both in the Baltic and North Sea services, due to normal bunkering practise.
This new quality of fuel has not yet a base for international trading and therefore the final additional costs are indicated in a wide price range.
We are forced to invoice this extra MARPOL surcharge in addition to our present bunker clause. The indication is now 4-8 % to be added on the present bunker surcharge (23 %). The final MARPOL surcharge will be informed at least before 19.5.2006, when the availability and the market price has stabilized for this quality of fuel.
We trust that this clarifies the present situation and the extra costs that are a direct result of the new regulation.
For additional information please see following links:
• www.imo.org/Marine Environment/Air pollution