Dear valued customers,
This is to notify that in order to better reflect the fuel cost increase resulting from IMO 2020 regulation, we have reviewed the fuel consumption and imbalance factor in transpacific trade lane to update the BUC Matrix as below.
Starting December 2019, BUC will be subject to the updated matrix until further notice.
To prepare for the fuel switch in late 2019, we will adopt a weighted 0.5% & 3.5% Sulphur fuel price to calculate the Dec. 2019 BUC amount “At Sea & F.E. ECA”. Effective Jan. 2020, we will fully adopt the 0.5% Sulphur fuel price to calculate BUC amount “At Sea & F.E. ECA”. BUC amount of “N.A. ECA” will still be calculated per the 0.1% Sulphur fuel price. A combined “At Sea & within ECAs” BUC rate will be published monthly and communicated to our customers 30 days in advance.
Also, please kindly understand that during the early stage of implementation, when the 0.5% Sulphur fuel index shown on public resources deviates considerably from the market level, the BUC shall be calculated per our actual purchase price of 0.5% Sulphur fuel instead.
COSCO Shipping Lines is dedicated to providing the best service and a transparent explanation of the BUC cost as always. We look forward to a joint effort with our customers, to protect the environment and build a greener planet. Your continuous support is highly appreciated.
America Trade Division
COSCO Shipping Lines Co., Ltd.