World News
Shippers Rail Against Sulfur Surcharge
Maersk's decision to add a new bunker adjustment factor (BAF) related to IMO2020 to the cost of moving freight has caught the ire of freight-moving sector.
The British International Freight Association (BIFA) has called the new charge unjustified.
"By any measure, these are very major increases," said BIFA general secretary Robert Keen.
"While the shipping operators may say that the new BAFs are needed to cover the cost of switching to low sulphur fuels or fitting exhaust 'scrubbers', rises of this magnitude are unjustified and could be construed as blatant profiteering by shipping lines determined to exploit the situation," Keen said.
The BAF mechanism used by ship operators to manage their fuel bills as bunker fuel prices vary. But companies managing the movement of frieght -- shippers and freight forwarders -- tend to see the surcharges as shipping companies maximising profit at their expense.
The new Maersk BAF will be charged separately from the company's freight from the start of next year.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.00 | 8.50 | 779.00 | 29.50 |
| Rotterdam | 608.00 | 11.00 | 764.50 | 24.50 |
| Houston | 636.50 | 8.00 | 807.50 | 5.00 |
| Fujairah | 649.50 | 4.00 | 888.50 | 11.50 |
| Global 20 Ports Average | 665.50 | 6.50 | 870.50 | 14.50 |
| Global 4 Ports Average | 635.50 | 3.50 | 810.00 | 17.50 |
| Global Average Bunker Price | 725.00 | 2.50 | 925.50 | 8.00 |
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