The shipping company’s customers will continue to pay their current rates for a while longer. File Image / Pixabay
French container line CMA CGM will continue to waive its low sulfur surcharge designed to pass on the higher fuel costs for very low sulfur fuel oil (VLSFO) to its customers, the company said Wednesday.
“As from July 1st, 2020, taking into consideration the current price of VLSFO, CMA CGM informs its customers that this Low Sulphur Surcharge is not applicable and may come back later as per our formula,” the company said in a statement on its website.
The company previously announced that it would not be applying the surcharge in May and June.
VLSFO cost $274.50/mt at Rotterdam on Tuesday, according to Ship & Bunker pricing, up $58.50/mt over the past month but still $102/mt less than high sulfur fuel oil cost at the Dutch port at the same time last year.