Maersk to Bump Up Bunker Charges. Hapag-Lloyd is not the only one to introduce a new system of bunker charges as the shipping sector faces additional costs due to the upcoming regulation. As such the EBS will be applicable to all cargo globally, effective June 1 2018 for non-Federal Maritime Commission (FMC) corridors and July 1, 2018 for FMC corridors, the company added. The above surcharge acronyms mean: OF (Ocean Freight), OHC (Origin Terminal Handling Charge), DHC (Destination Terminal Handling Charge), ERS (Emergency Risk Surcharge), BAF (Bunker Adjustment Factor), LSS (Low Sulphur Surcharge) and PSS (Peak Season Surcharge). In its announcement Monday the company announced hypothetical BAF rates as an example of how much dry container freight could cost on various different routes at a range of different bunker prices. The charge is based on … The performance was driven by agile capacity management, cost-cutting measures as well as lower bunker prices and higher freight rates, Maersk said. Maersk’s environmental fuel fee (EEF) and BAF are subject to trigger of an increase or decrease in the monthly bunker price by an average of $50 per tonne or more. Why Maersk axed Safmarine and Damco — and what’s next CANADA Daily News and Updates Sept 2nd, 2020 ONE Live Chat Service now available in Denmark, Switzerland and France The above surcharge acronyms mean: OF (Ocean Freight), OHC (Origin Terminal Handling Charge), DHC (Destination Terminal Handling Charge), ERS (Emergency Risk Surcharge), BAF (Bunker Adjustment Factor), LSS (Low Sulphur Surcharge) and PSS (Peak Season Surcharge). By Chris Dupin / www.americanshipper.com / May 25th, 2018. Maersk’s new bunker fuel surcharge arrangements ‘stink ... Based on the information released by Maersk, the new charges, which are additional to agreed contract rates, are based on two factors – an average cost of fuel and a ‘trade factor’ that upscales the costs on head trades and discounts the fuel cost on reverse trades. The regulation will bring increases and uncertainty for fuel costs in maritime transport. According to GSF, based on the information released by Maersk, the new charges, which are additional to agreed contract rates, hinge on two factors: an average cost of fuel and a ‘trade factor’ that upscales the costs on head trades and discounts the fuel cost on reverse trades. Maersk Line is revamping the way it levies fuel surcharges on feeder-ship partners and cargo owners with the reintroduction of a Bunker Adjustment Factor (BAF). For Maersk it is the SBF and for MSC it is called the BUC. The above rates are also subject to other applicable surcharges, including local charges and contingency charges. Since the 7th of December 2016, we indicate our prices as per EU rules. ShippingWatch has learned that the German container shipping line will soon inform its customers that they will be subject to a surcharge because the price of low-sulfur bunker fuel has increased significantly in recent weeks. Maersk Line is introducing a Low Water Surcharge (LWC) applicable to ALL Cargo from North Europe to Montreal (Canada), effective 30th July 2018. Danish shipping company Maersk Line needs to reconsider its plan to introduce new fuel surcharge arrangements from January 1, 2019, the Global Shippers Forum (GSF) believes. In the wake of rising fuel costs, container carriers, including the three largest — Maersk Line, Mediterranean Shipping Company and CMA CGM — have announced new bunker … Maersk Line said that due to the unexpected development it was no longer possible for the company to recover bunker costs through the standard bunker adjustment factors. To/from: USA ports. The new SBF rate is higher than our previous BAF rate - however you will see the oceanfreight rate has reduced by same / similar quantum so the net combined affect is… Other charges such as contingency charges and local charges may also apply. Recently MAERSK adjusted our container rates to be in line with new Bunker (Oil) rating system called STANDARD BUNKER FACTOR (SBF). BUNKER SURCHARGE (BAF-08) Effective June 4, 2019, except as otherwise provided, the Bunker Surcharge (BAF-08) shall apply to tariff and contract rates for worldwide cargo shipments moving under the scope as outlined herein to/from Asia and Far East ports.. From/To: ASIA and FAR EAST Ports. Maersk to Bump Up Bunker Charges Staff | Mar 06, 2009 12:50PM EST. The cost of high-sulfur fuel has been dropping in recent months as carriers make the transition to IMO 2020 compliant fuel, which has been expected to become more expensive as the transition takes place, according to Maersk's second … So the SBF already includes the recent sharp increases in fuel prices. Updated on 18 Sep 2018 11:33 GMT: Maersk Line has announced that, from January 2019, it will be implementing a new Bunker Adjustment Factor (BAF) in a move designed to help clients to predict, plan and track how changes in fuel price will impact shipping freight rates with the implementation of the 0.5 percent global cap on fuel sulphur content in 2020. Ostensibly, the 6 USD/TEU increase stems from the effect of the changing bunker fuel price? Japanese liner company ONE is the latest to impose an emergency bunker surcharge, joining industry giants Maersk, MSC and CMA CGM which all imposed surcharges last week. To find the associated basic freight please see here. Also called ‘Fuel Adjustment Factor’ or ‘Bunker Surcharge’, BAF represents the floating part of sea freight charges to adjust the volatility of the fuel prices. Port of Loading. Search criteria. Container shipping company Maersk Line has announced a new system of bunker charges for its customers to reflect higher fuel costs as the International Maritime Organization’s global sulfur emission limit drops to 0.5%. Dan-Bunkering and its owner Bunker Holding denies having sold jet fuel in violation of EU sanctions against Syria. Get more information here. After the three large European container carriers, Maersk Line, MSC and CMA CGM, announced emergency bunker surcharges due to increasing oil prices last week, people in the shipping industry are questioning if the $12/Barrel decrease from Friday to Tuesday morning will ease the effect of the surcharge amount immediately, or if carriers will follow decreasing trends slowly. Maersk's new BAF will be calculated using the average fuel price at a few key bunkering ports around the world and a measure of average fuel consumption for each route. For Maersk Line the corresponding charge is 60 USD/TEU and for CMA CGM it … Prosecutors said there was evidence of bribe payments to Petrobras employees in exchange for privileged information that allowed Maersk to … And the companies are surprised by the charges filed by the Danish financial police in the case, says Bunker Holding, which is owned by Torben Østergaard-Nielsen and is the world's largest bunker supplier, in a written comment to ShippingWatch. Maersk on their website write about the SBF: “This charge covers the fluctuations in global bunker costs”. The above rates are also subject to other applicable surcharges, including local charges and contingency charges. Carriers announce charges because of rapid rise in fuel costs. 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