The Global Shippers Forum (GSF) is suspicious regarding the announcement by Maersk’s new fuel surcharge arrangements from 1 January 2019 to recover presumed costs from the introduction of low-sulphur marine fuel from 1 January 2020.
The BAF replaces Maersk Line’s current Standard Bunker Adjustment Factor (SBF) surcharge and includes two key elements:
- The fuel price which is calculated as the average fuel price in key bunkering ports around the world;
- A trade factor that reflects the average fuel consumption on a given trade lane as a result of variables like transit time, fuel efficiency and trade imbalances between head haul and backhaul legs.
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In addition, as the regulation is expected to increase uncertainty to fuel costs for shipping, the BAF surcharge aims to recover increases in fuel related costs. It will be charged separately from Maersk Line’s freight rate.
James Hookham, GSF Secretary General, said:
Asking customers to contribute to new environmental costs is to be expected, but this charge lacks transparency; no data is available to let customers work out how the charge has been calculated … GSF will be taking this piece of financial engineering apart piece by piece as we suspect this has more to do with rate restoration than environmental conservation.
GSF also said that Maersk has other options, as global rules allow lines to meet air quality standards by fitting ‘scrubbers’ to clean up exhaust emissions, rather than buying more expensive low-sulphur fuel.
What is more, GSF is disappointed by the lack of negotiation and the timing and the structure of the charge.
We suspect that other shipping lines will be tempted to follow suit, but it would surely be of concern to competition authorities around the world if the same formula were to be used by other shipping lines, especially in the same Alliance.
For these reasons, GSF calls Maersk to consult with customers and reconsider their strategy.
