Will the (Emergency) Bunker Surcharges raise once again?

Will the (Emergency) Bunker Surcharges raise once again?

As everyone is aware in shipping, the last couple of months shippers and BCO's have been hit by additional surcharges. As every carrier has their own naming, it all comes down to the fact that carriers are making heavy losses on the fuel prices, and thus now seek compensation for it.

Carriers tend to have a very bold way of doing this, and this is to "just" implement another cost element to the rates you are paying for your sea freight.

MSC for example calls it the Fuel Adjustment Contribution, Hapag-Lloyd calls it the Operations Cost Recovery but most of the carriers still existing today call it the Emergency Bunker Surcharge(EBS).

This surcharge can differ from area to area, however the most carriers tend to use the same amount per TEU on all area's, about $55,- / TEU. The surcharge is being "triggered" when fuel prices will start to reach certain levels. Above those levels, a certain amount will be added to the surcharge.

So, the question now, will this end soon? Of course no one can tell for sure, however looking at the current fuel prices, we tend to see an uprising line. Meaning that we can say with some certainty that these surcharges will rise in the near future. Of course the traditional Bunker Adjustment Factor(BAF) will also be triggered, and will become higher(unless you closed a deal where this charge is fixed).

There are certainly ways for BCO's to prevent to receive raises like this, however this should been in place in earlier stages, and then mentioned/agreed upon in a service contract with your logistics provider.

You can find the day to day development on Bunkers on:
https://shipandbunker.com/prices/emea/nwe/nl-rtm-rotterdam

Take care!
M.