Emergency bunker surcharges (EBSs) are being announced by international containerlines to counter rapid surge in fuel prices.
According to a local customer advisory issued by Mediterranean Shipping Company (MSC) last week, fuel prices have risen by over 30% this year and almost 70% since last June, with the cost in Europe exceeding US$442 per metric tonne.
“With crude oil today hovering around US$80 a barrel — the highest since 2014 — the situation is no longer sustainable without emergency action,” it stated.
Consequently, MSC advised on Wednesday that it would be introducing a worldwide temporary fuel adjustment contribution applicable on top of the bunker contribution on all ocean cargo from Australia, New Zealand and New Caledonia.
This entails US$50 per dry and reefer unit to most destinations, and US$25 to non-European Economic Area trades excluding the United States / Canada / Mexico / Central-South America / the Caribbean, as from a bill of lading date of June 4 until further notice.
“This last resort measure is essential to ensure tgat we navigate these challenging economic conditions in a steady and sustainable way and coontinue to provide a high quality of service to all our customers. We continue to evaluate longer-term strategies to help ease the situation”.
On Friday last week CMA CGM announced that as from June 1 it would be applying the following bunker-related surchage to all cargo on all of its worldwide trades:
- United States Dollars — US$55 per dry TEU and US$85 per reefer TEU.
- Euros — €45 per dry TEU and €70 per reefer TEU.
Noting the increase in fuel price had been “significantly higher than expected”, Maersk Line announced on Thursday last week it would be introducing the following EBS as from June 1 in non-Federal Maritime Commission (FMC) corridors and July 1 in FMC corridors:
- United States Dollars — US$60 per dry TEU and US$120 per dry FEU/45-footer, US$90 per reefer TEU and US$180 per reefer FEU/45-footer.
- Euros — €50 per dry TEU and €100 per dry FEU/45-footer, €75 per reefer TEU and €150 per reefer FEU/45-footer.
- British Pound — £45 per dry TEU and £90 per dry FEU/45-footer, £65 per reefer TEU and £130 per reefer FEU/45-footer.
Maersk’s EBS is based on a bunker price of US$440 (IFO380 in Rotterdam) and is subject to change as per the following trigger events:
- Should the bunker price (IFO380 in Rotterdam) increase to a level of US$530, EBS tariffs will be multiplied by a factor of 2.0.
- Should the bunker price (IFO380 in Rotterdam) decrease to a level of US$370, EBS tariffs will be zero.
Describing the situation as “unsustainable”, the carrier stated that “this unexpected development means that it is no longer possible for us to recover bunker costs through standard bunker adjustment factors”.
Other global carriers are understood to be also taking similar action.
(As printed in The New Zealand Shipping Gazette dated June 2, 2018)