World News
Freight Forwarder Joins Call for More Transparent Bunker Surcharges
Online freight forwarder iContainers today has joined the call for a more transparent and long-term solution for implementing Emergency Bunker Surcharges (EBS).
The world's top three box carriers recently drew heavy criticism after announcing EBS's, prompting Drewry to suggest it was "time to devise a new system for bunker costs that protects both parties."
But while frustrating, iContainers says implementing an EBS is a "fair move" by the shipping lines.
"The Emergency Bunker Surcharge is a result of market movements. At the end of the day, it's fair for carriers to pass this additional cost on to their clients since it's a cost that they do not control and can change drastically depending on factors that they have absolutely no influence over," says Klaus Lysdal, vice president of operations at iContainers.
Still, iContainers believes improvements must be made, particularly to address the apparent lack of transparency.
"The cost is there, and they have to make a call to recover what they would otherwise lose from it. But hopefully the liners can create a mechanism that's just to all parties sooner rather than later," says Lysdal.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.50 | 1.00 | 770.00 | 3.50 |
| Rotterdam | 601.50 | 2.50 | 754.00 | 2.00 |
| Houston | 619.00 | 11.50 | 795.50 | 3.00 |
| Fujairah | 651.50 | 1.00 | 895.00 | 2.00 |
| Global 20 Ports Average | 664.00 | 1.50 | 856.50 | 2.00 |
| Global 4 Ports Average | 630.00 | 3.00 | 803.50 | 2.50 |
| Global Average Bunker Price | 718.00 | 0.50 | 914.50 | 0.50 |
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