How it Works section:
Updated March 16, 2020
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.
||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