Surcharges Drop as Oil Prices Fall

by Ship & Bunker News Team
Monday November 3, 2014

As fuel prices fall, carriers are reducing the surcharges for shippers, industry news site JOC reports.

"We are seeing most carriers reducing their fuel surcharges across the international trade lanes," said Matt Motsick, CEO of Catapult International.

Motsick said CMA CGM and Orient Overseas Container Line (OOCL) recently reduced their fuel surcharges.

Matson Navigation (Matson) has reduced the surcharge for its Hawaii route from 42.7 percent to 37.5 percent and the one for its Guam route from 43 percent to 38 percent, effective Nov. 2.

Dependable Hawaiian Express also announced a similar reduction. 

With petroleum prices generally falling, high-sulfur bunker fuel has fallen 25 percent, from $656 per metric tonne (pmt) in April to $491 recently, and prices have dropped 20 percent over the past year.

Matson announced its reduction of surcharges earlier this week.

The changes come as carriers, including OOCL, are preparing to roll out new surcharges to offset the cost of using low sulfur fuel in Emissions Control Areas (ECAs) starting next year.