Tag: bunker prices

Along with the technical, regulatory and financial aspects of the 2020 sulphur cap, the importance of the contractual dimension should not be overlooked. Mr. Grant Hunter from BIMCO analyzed what considerations the operators should make to avoid potential disputes in the run up and ahead the 2020 sulphur limit.

In its financial report for the first quarter of 2018, Maersk adjusted its expectations for 2018. Namely, the shipping giant lowered its profit forecast, because of the increased uncertainties. Maersk’s new expectation for earnings before interests, tax, depreciations and amortisations is in the range of USD 3.5-4.2bn.

Earlier this year, ANL decided to impose emergency bunker surcharge due to high bunker costs from the beginning of the year. In a recent update, the company informed that it will extend this measure as from August 1st 2018. The measure will be applied to all cargo on all worldwide trades.

French container ship giant CMA CGM announced it will maintain the emergency bunker surcharges, as of 1 August, due to the increasing bunker prices since the beginning of the year. From August 1st this measure, based on the Brent average price in June, will be applied to all long-haul cargo Worldwide.

Hapag-Lloyd will limit its costs to deal with increasing fuel prices that caused the company to cut its current profit outlook. Namely, as the company's CEO, Rolf Habben Jansen noted, costs increased more than expected, something that puts pressure on the operating margins.

Hapag-Lloyd informed that it will revise its current profit outlook, reducing it. The reason for this is the continuing increase in the operational costs since the beginning of the year, especially with regard to fuel related costs and charter rates combined with a slower than expected recovery of freight rates.

As bunker prices have remained high, French container ship giant CMA CGM announced it will maintain the emergency bunker surcharges. Consequently, as from July 1st, these bunker-related surcharges, based on the average of bunker prices in May, will be applied to all long-haul cargo worldwide.

The European Shippers' Council raised concerns about the implementation of the Emergency Bunker Surcharge by carriers. Carriers explain the introduction of this surcharge by the increase of the bunker oil price. However, ESC said that the use of such measure is not justified.

ONE informed that it has encountered significant inflation of fuel costs over recent months, as bunker fuel prices have increased by more than 25% during 2018. This increase in fuel costs made the company to implement a Bunker cost Recovery Surcharge charge on a widespread basis.

Three shipping giants, Maersk, MSC, and CMA CGM, have announced introduction of Emergency Bunker Surcharges, due to increasing fuel costs. The British International Freight Association, the trade association for UK freight forwarding and logistics companies, calls for an end to shipping line surcharges.