BRC – Bunker Recovery Charge

BRC – Bunker Recovery Charge

As of 1 January 2019, the container shipping industry will be introducing new bunker charges to achieve the common goal of improving environmental performance in the container shipping supply chain, as required by the 2020 Sulphur cap.

The shipping industry believes that it is essential to segregate transparently the burden of fuel costs. Passing on that cost is also vital to ensure the sustainable future of the container shipping industry.

With regard to the UN International Maritime Organization’s 2020 Sulphur fuel content regime, it is estimated that the cost of the various changes the container shipping industry are making to their fleet and its fuel supply is in excess of two billion dollars (USD) per line.

After considerable analysis of operating costs and related market factors, a new price mechanism – the BRC (Bunker Recovery Charge) has been established by the container shipping industry – which will be transparent to respective trades. It will reflect the true additional cost that will be incurred as a result of the regulatory changes which we all support in order to protect the environment.

The BRC replaces the current Bunker Contribution (BUC/BAF), Fuel Adjustment Factor (FAD/FAF) and Emergency Fuel Surcharge (EFS/EBAF), and largely absorbs other pre-existing fuel-related charges. Charges specifically related to coastal Emission Control Areas (ECAs) will remain in place.

We have been notified of increases to the terminal rate structures effective 1st January 2019.

We thank you for your support and understanding.

If you have any further questions, please do not hesitate to contact us.

The Team at Transolve Global

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