​OOCL’s Bunker Recovery Approach
 
Currently, all ocean-going vessels are required to use marine fuel with a Sulphur content of no more than 0.5% (from 3.5%) in order to comply with the IMO 2020 requirement effective as of January, 2020. This initiative is expected to result in an approximately 85% reduction of Sulphur emissions.

OOCL’s fleet is committed to using compliant marine fuel and is confident to be able to secure the Low Sulphur Fuel of 0.5% (LSF) we need for our vessels to comply with the IMO 2020 mandatory requirement.

In our bunker cost recovery initiative, OOCL introduced two new surcharges, namely the FUEL COST RECOVERY (FCR) and LOW SULPHUR ADJUSTMENT (LSA)*. The FCR and LSA formulae are based on OOCL’s own calculations that take into consideration of various factors including the different fuel types being used, fuel price fluctuations, ship size and capacity, and vessel utilization levels.

The LSA mainly applies to spot and short-term contracts (equal or less than 3 months validity); except for those in the Trans-Pacific & Trans-Atlantic Trades where LSA is a bunker costs recovery based on the fuel price difference between LSF 0.5% and HFO 3.5% base price in the calculations and will be binding until further notice.

The FCR applies to long-term contracts (more than 3 months validity) and uses the LSF 0.5% price in the calculations and will be binding until further notice.

The LSA* and FCR tariff will be reviewed monthly and subject to adjustments if the fuel price fluctuation is more than USD 25 per ton.  We encourage customers to check the OOCL website on a monthly basis for notices on such changes (if any) in the LSA* and FCR tariffs.

The LSA* and FCR surcharges are valid until further notice (unless otherwise specified) and governed by and subject to carrier’s prevailing tariff(s) published on www.oocl.com.

Please use the webpage link to Tariff & Rate Enquiry for full price (including base rate, bunker related charges, security related charges and additional charges and surcharges reflecting high demand, such as Peak Season Surcharges) on www.oocl.com. Local surcharges and contingency charges may apply.

For further information, please kindly contact our local Sales Representatives.

* except for those in the Trans-Pacific & Trans-Atlantic Trades