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Bunker Clause, Baltic and North Sea Services

Finnlines Baltic and North Sea Services (excluding Finnlink and Nordolink)

BRF reference bunker quality changed and MARPOL surcharge discontinued

The current Bunker Clause will be renewed on the 1st January 2020, same date as the IMO world sulphur cap is introduced.

The BRF (Bunker Restoration Factor) formula and the BRF table will remain unchanged, substituting only the current reference to IFO380 (high sulphur oil) with a reference to Ultra Low Sulphur Oil (SECA-zone-legal-and-compliant fuel).

At the same time the MARPOL surcharge will be discontinued.

As from 1st of January 2020 the use of IFO380 product will be severly restricted everywhere for environmental reasons. The market share of IFO 380 is expected to be reduced from of about 80% of world bunker market to a very marginal amount, as it will be used by only about 4-5% of world ships equipped for cleaning its air emissions.

On short term, the marginality of IFO380 share would have involved its price volatility, bringing a cost in itself to shippers and shipping companies. The emerged IFO380 volatility has become evident in the last quarter of 2019, as bunker markets have anticipated the fundamental change of January 2020. The volatility of HSFO has been around 40% in October and November 2019 compared to last year, whereas ULSFO in the same period has experienced a volatility of less than 20 %.

The marginality of IFO380 will also mean that in the long run relevant increases in its production and distribution costs are to be expected, as much thinner volumes will be demanded, produced and transported instead.

According to Finnlines Bunker clause adopted on January 2015, the clause can be re-evaluated whenever there are significant changes in relevant factors (essentially on a yearly basis).

Therefore, as from 1st January 2020 the Bunker Clause for Baltic and North Sea services will discontinue to reference IFO380 and adopt the legal and stable reference to ULSFO. Nordolink and Finnlink are excluded from the change, as their respective Bunker clauses are already 100% referencing to SECA compliant fuels.

Kindly note, that the bunker surcharge will be defined as percentage of the freight, except for trailers and lorries in the Baltic Services for which EUR/lane metre will be used.

The New Finnlines Baltic and North Sea Services Bunker Clause

All freight rates are exclusive of bunker surcharge, BRF. As from 1 January 2020 the surcharge will be based on the mix of ULSFO (75%) and MGO (25%) price notation in Rotterdam, as published by PLATTS Bunker Wire.

The observation period of the fuel prices is one calendar month.

The amount of surcharge is based on a table, where the bunker price index is calculated as described above. The surcharge is valid until there is a change in the bunker prices to validate an adjustment. The surcharge is then adjusted on the first working day of the month, and a notice is given to the customers and / or published on Finnlines' website. The new bunker surcharge will be valid on the 7th day of the month.

The clause will be re-evaluated whenever there are significant changes in relevant factors (essentially on yearly basis).


  1. The average price of ULSFO (75%) and MGO (25%) per 1000 kg in EUR
  2. Baltic Sea / trailers, lorries; EUR / lane metre
  3. Baltic Sea / other cargo
  4. North Sea / all cargo; per cent

1

2

3

4

127.5

-6.72

-13.23%

-13.23%

135.0

-6.40

-12.60%

-12.60%

142.5

-6.08

-11.97%

-11.97%

150.0

-5.76

-11.34%

-11.34%

157.5

-5.44

-10.71%

-10.71%

165.0

-5.12

-10.08%

-10.08%

172.5

-4.80

-9.45%

-9.45%

180.0

-4.48

-8.82%

-8.82%

187.5

-4.16

-8.19%

-8.19%

195.0

-3.84

-7.56%

-7.56%

202.5

-3.52

-6.93%

-6.93%

210.0

-3.20

-6.30%

-6.30%

217.5

-2.88

-5.67%

-5.67%

225.0

-2.56

-5.04%

-5.04%

232.5

-2.24

-4.41%

-4.41%

240.0

-1.92

-3.78%

-3.78%

247.5

-1.60

-3.15%

-3.15%

255.0

-1.28

-2.52%

-2.52%

262.5

-0.96

-1.89%

-1.89%

270.0

-0.64

-1.26%

-1.26%

277.5

-0.32

-0.63%

-0.63%

285.0

0.00

0%

0%

292.5

0.32

0.63%

0.63%

300.0

0.64

1.26%

1.26%

307.5

0.96

1.89%

1.89%

315.0

1.28

2.52%

2.52%

322.5

1.60

3.15%

3.15%

330.0

1.92

3.78%

3.78%

337.5

2.24

4.41%

4.41%

345.0

2.56

5.04%

5.04%

352.5

2.88

5.67%

5.67%

360.0

3.20

6.30%

6.30%

367.5

3.52

6.93%

6.93%

375.0

3.84

7.56%

7.56%

382.5

4.16

8.19%

8.19%

390.0

4.48

8.82%

8.82%

397.5

4.80

9.45%

9.45%

405.0

5.12

10.08%

10.08%

412.5

5.44

10.71%

10.71%

420.0

5.76

11.34%

11.34%

427.5

6.08

11.97%

11.97%

435.0

6.40

12.60%

12.60%

442.5

6.72

13.23%

13.23%

450.0

7.04

13.86%

13.86%

457.5

7.36

14.49%

14.49%

465.0

7.68

15.12%

15.12%

472.5

8.00

15.75%

15.75%

480.0

8.32

16.38%

16.38%

487.5

8.64

17.01%

17.01%

495.0

8.96

17.64%

17.64%

502,5

9,28

18.27%

18.27%

510,0

9,60

18,90 %

18,90 %

517,5

9,92

19,53 %

19,53 %

525,0

10,24

20,16 %

20,16 %

532,5

10,56

20,79 %

20,79 %

540,0

10,88

21,42 %

21,42 %

547,5

11,20

22,05 %

22,05 %

555,0

11,52

22,68 %

22,68 %

562,5

11,84

23,31 %

23,31 %

570,0

12,16

23,94 %

23,94 %

577,5

12,48

24,57 %

24,57 %

585,0

12,80

25,20 %

25,20 %

592,5

13,12

25,83 %

25,83 %

600,0

13,44

26,46 %

26,46 %

607,5

13,76

27,09 %

27,09 %

615,0

14,08

27,72 %

27,72 %

622,5

14,40

28,35 %

28,35 %

630,0

14,72

28,98 %

28,98 %

637,5

and higher, BRF surcharges accordingly