2007 Worldscale Schedule to reflect substantially higher bunker prices

Increased bunker prices will lead to substantial increases in the Worldscale Flat rates for long voyages in the 2007 Worldscale Schedule compared with the 2006 Schedule. The impact for short voyages with a high proportion of port time will be less.

 

The worldwide average price for bunker fuel (380 cst) in the period 01 October 2005 to 30 September 2006 was USD 318.25 per tonne, and this is the assumption upon which the 2007 WS Flat rates are based, compared with USD 231.50 for the 2006 Schedule.

 

The bunker price assumption is printed in the preamble of the Worldscale Schedule, and thus it is possible for those who so wish to agree on separate bunker price adjustment clauses to be applied should the actual bunker price differ from the one upon which the flat rates are based. INTERTANKO’s Documentary Committee has produced a Bunker Price Adjustment Clause

 

The extra costs for security in ports, including the effects of the ISPS Code, are reflected in the Worldscale schedule for voyages involving ports where they have been notified of the charges - EXCEPT for U.S. ports. INTERTANKO has urged the New York Worldscale Association to remove this anomaly. As long as security charges are not reflected for U.S. ports, the best comparability cannot be achieved.

 

The Worldscale Associations have taken SBT reductions into consideration (where known) when assessing port cost allowances for the 2007 Schedule.

 

The 2007 Worldscale Schedule does not reflect the extra charges connected with the requirements to use low sulphur fuel in the so-called SECAs (Sulphur Emission Control Area). The Worldscale Associations’ position remains the same as in their 6 June 2006 circular. INTERTANKO’s Worldscale Committee continues its constructive dialogue with the Worldscale Associations on this issue.

 

The Worldscale Associations have published on their web site a notice which also refers to the assumptions used for the Great Belt and the Sound (Denmark), STS anchorage at Fujairah Offshore), Papua New Guinea routeings, Bonga Terminal (Nigeria), Congo Shippers Council Tax and SOCOTRAM Tax.

 

The Worldscale Associations also remind subscribers that the distances used for rate calculations for certain voyages may have changed.

 

The Worldscale Schedule for 2007 will be issued mid-December and will take effect on
1 January 2006. A notice indicating some of the changes was mailed to subscribers on
3 November and can be seen under "circulars" on the Worldscale Associations’ web sites
http://www.worldscale.co.uk
 and http://www.worldscale-usa.com.

 

Contact: Kristian R. Fuglesang