Seaboard Marine is committed to providing the highest level of customer service, without exception. In our ongoing effort to uphold that commitment, we are required to abide by a new environmental regulation that will globally impact the ocean transportation industry.

Updated March 16, 2020

Previous update

The United Nations International Maritime Organization (IMO) implemented new, global regulations to limit the sulfur content in fuel that is used to power ships. The new regulation, which became effective January 1, 2020, reduced the sulfur content in fuel from 3.5% (outside of Emission Control Areas) to 0.5%. This implementation of this requirement is perhaps the most ecological regulation to impact the international shipping industry. Seaboard Marine implemented a recovery method that provides our customers the ability to predict, plan and track how changes in fuel costs for shipping will impact the total shipping freight rate.

Effective from March 17, 2019, Seaboard Marine began using the below Marine Fuel Surcharge Index to provide our customers with greater visibility as adjustments are required in our fuel recovery program.  Beginning November 2019, Seaboard Marine adjusted the basis for calculating the Marine Fuel Surcharge from Platts Bunkerworld benchmarked IFO380 (3.5% sulfur) fuel in Houston and New York to fuels that comply with the new compliant fuel (0.5% sulfur or lower).

Any necessary adjustment will be per our published Marine Fuel Surcharge Index.

How it Works section:

Updated March 16, 2020

Previous update

The Carrier will calculate the monthly average of New York and Houston MGO, equally weighted, prices as published by Platts Bunkerworld on a quarterly schedule. The average monthly price will be published on this web page so that our customers can monitor the cost of fuel as it relates to the Marine Fuel Surcharge Index.

The average price will be calculated quarterly based on the monthly MGO price starting each 16th day of the month through the 15th day of the following month and consolidated on a quarterly basis based on the below review schedule.

The initial quarterly review will be based on the monthly averages reported from March 16, 2020 to June 15, 2020.  The resulting value will result in any adjustment to the Marine Fuel Surcharge in accordance with the Marine Fuel Index.

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Review Period Review Date Effective Date of Change
March 16, 2020 to June 15, 2020 June 15, 2020 August 1, 2020
June 16, 2020 to September 15, 2020 September 15, 2020 November 1, 2020
September 16, 2020 to December 15, 2021 December 15, 2020 February 1, 2021

*Extension beyond February 1, 2021 pending

If the average price is higher or lower than the current index tier average price, Seaboard Marine will adjust the fuel charge based on the Marine Fuel Surcharge Index corresponding tier level on the first day of the next available month (about 45 days later). Example – For the review period March 16 – June 15 any change would be effective August 1.

The Carrier will continue to use MGO fuel prices until a reliable 0.5% Low Sulfur fuel cost index is available. If a reliable 0.5% Low Sulfur fuel cost index is available, Seaboard Marine will use the prices of 0.5% Low Sulfur in the computation instead of the MGO price.

Initial base MGO average is $543 per ton

Marine Fuel Surcharge Index

Current Average: $644 (IMO2020 compliant fuel)

Average as of  April 1st, 2020: $543 (IMO2020 compliant fuel)

Price Range-Per Metric Ton LCL/BB Vehicles  20′ DC  20′ RE  40′ DC  40′ NOR  40′ RE  45′ DC
$ – $ 199 $ 4 $ 21 $ 100 $ 130 $ 200 $ 200 $ 260 $ 225
$ 200 $ 249 $ 6 $ 27 $ 125 $ 163 $ 250 $ 250 $ 325 $ 281
$ 250 $ 299 $ 7 $ 33 $ 150 $ 195 $ 300 $ 300 $ 390 $ 338
$ 300 $ 349 $ 8 $ 39 $ 175 $ 228 $ 350 $ 350 $ 455 $ 394
$ 350 $ 399 $ 9 $ 45 $ 200 $ 260 $ 400 $ 400 $ 520 $ 450
$ 400 $ 449 $ 10 $ 51 $ 225 $ 293 $ 450 $ 450 $ 585 $ 506
$ 450 $ 499 $ 11 $ 57 $ 250 $ 325 $ 500 $ 500 $ 650 $ 563
$ 500 $ 549 $ 12 $ 63 $ 275 $ 358 $ 550 $ 550 $ 715 $ 619
$ 550 $ 599 $ 13 $ 69 $ 300 $ 390 $ 600 $ 600 $ 780 $ 675
$ 600 $ 649 $ 14 $ 75 $ 325 $ 423 $ 650 $ 650 $ 845 $ 731
$ 650 $ 700 $ 15 $ 81 $ 350 $ 455 $ 700 $ 700 $ 910 $ 788
$ 700 $ 749 $ 17 $ 87 $ 375 $ 488 $ 750 $ 750 $ 975 $ 844
$ 750 $ 799 $ 18 $ 93 $ 400 $ 520 $ 800 $ 800 $ 1,040 $ 900

Click on the button below, to view a trending chart of the weekly calculated averages between New York and Houston for IFO 380 and MGO.

View Marine Fuel Averages

IFO 380 Index

IFO 380

MGO Index

MGO