Container market divided over emergency bunker fuel surcharges
12 june 2018
Nerves are fraying in the container market over how best to reflect rising fuel costs in customers’ freight rates in deals covering long periods of time.
Denmark’s Maersk Line, the world’s largest shipping company, announced an emergency bunker surcharge of $120/FEU for dry containers and $180/FEU for refrigerated cargo last month to compensate for higher fuel bills driven by sharp gains in crude prices over the past year.
Most of the world’s largest container lines have imposed similar surcharges.
But some of the industry’s customers have baulked at the surcharges, saying existing bunker adjustment factor arrangements should cover variations in fuel prices.
Opinion is divided on the right mechanism to recover costs in circumstances like the unexpectedly sharp rise in crude prices this year.
“The Emergency Bunker Surcharge (EBS) is a necessary action to ensure a continued sustainable service to our customers, and will only cover the extra costs,” Lars Oestergaard Nielsen, president of Maersk Line in Latin America and the Caribbean, told S&P Global Platts earlier this month.
“We are following the market trends closely and will adjust the tariffs as soon as the fuel price drops below the beginning level of the year,” he added.
But container industry consultant Lars Jensen argues the surcharges are not appropriate, and could make the market less transparent over time.
“The implementations announced now are not logical and seem more to be fueled by a need to do something urgently, than a need to implement a logical structure to the surcharge,” Jensen said. “If these surcharges stick, we will be left with the jungle of surcharges becoming more illogical and non-transparent.”
The problem for container lines and their customers alike is what represents a fair value for bunkers.
From a cost per 40 foot container (FEU) perspective, the new Platts Bunker Charge (PBC) 1&2, North Asia to North Continent, on a round voyage basis, for May 2018 average soared to around $438/FEU from $391/FEU in January 2018.
Looking more recently at the week to June 7, PBC 1&2 fell by more than $3/FEU to $443.01/FEU on June 7, from $446.75/FEU a week earlier.
Across the Atlantic, trans-Pacific round voyage Platts Bunker Charge 13&14 had the biggest drop this week, falling by $8/FEU to $463.76/FEU on June 7. North Asia to West Coast North America, PBC13, closed at $324.63/FEU on June 7.
The round voyage, North Asia to East Coast of North America, PBC5&6, had a similar fall to the North Continent this week, down $3/FEU at $752.08/FEU, June 7. The head haul route, PBC5, closed at $526.46/FEU, June 7.
These Platts Bunker Charges use our Low Sulfur Marine Gas Oil and HSFO 380 CST bunker benchmark pricing and include representative route specific ports along with other transparent variables.
This new pricing mechanism could provide the necessary transparency and reassurance to the carriers, shippers and freight forwarders to negotiate the bunker cost element. 
 source platts

Diğer Haberler:
  • New IMSBC Code requirements from Jan 2019
  • New IMSBC Code requirements from Jan 2019
  • Agreement reached to increase minimum wage for seafarers
  • ISO issues first set of global standards for drones
  • Engine types accepted under MARPOL Annex VI
  • SSTL releases first images from S-Band Synthetic Aperture Radar satellite, NovaSAR-1
  • ClassNK releases Guidelines for Use of Drones in Class Surveys
  • Tubitak proje teklifleri
  • Montreux Sözleşmesi
  • Sıfır atık yönetmelik taslağı
  • Implementation of sulphur 2020 limit - carriage ban adopted
  • Addressing marine plastic litter from ships – action plan adopted
  • SOLAS 2014
  • MEPC 73
  • EU approves Denmark’s tonnage tax scheme extension
  • Port Reception facilities
  • Changes to IMDG Code
  • Mediterranean SOx emission control area study begins
  • Frontline Ltd. announces their investment in Feen Marine Scrubbers Inc
  • PSC Concentrated Inspection Campaigns for 2018
  • Exemption of fire extinguisher in boiler spaces
  • Baltık kuru yük endeksi ve Petrol Fiatları,piyasa haberleri
  • Çevre Haberleri
  • Guidance on LNG Bunkering to Port Authorities and Administrations
  • Tüm Haberler
  • Konuyla İlgili Kitaplar
    © Prof. Dr. Mükerrem Fatma İlkışık
    Her Hakkı Saklıdır.

    Bu Site Bilgi Amaçlıdır Olup, İçeriğin Doğruluğu Hakkında Garanti Vermez.
    Bu Konularda Her Zaman IMO'nun Son Baskıları ve Genelgeleri Takip Etmeniz ve Klas Kuruluşunuza Başvurmanız Önerilir.
    SafranNET HazırSite ile hazırlanmıştır
    SafranNET ©