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Shipping companies implement Emergency Bunker Surcharge

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Shipping companies implement Emergency Bunker Surcharge

Fuel prices are skyrocketing. Since June 2017, these have risen with over 70%. As a result, the current bunker surcharge does not cover fuel expenses by far. That is why shipping companies have announced the implementation of an Emergency Bunker Surcharge (EBS) starting June 1st. This will apply to all sea cargo transports with a boarding date starting June 1st.

 

The EBS should limit the extent of massive losses at shipping companies

Despite growing volumes and revenue, most shipping companies are operating at significant losses. The high costs of fuel are a major reason for this. Since January of this year, the price for a vat of raw oil has risen with 70%. Normally, fluctuations in fuel prices are factored into the bunker surcharge. However, the price increase has become so high that the regular surcharge cannot keep up with it.

That is why shipping companies are using the EBS as an emergency measure. CMA, CMG, APL, MSC, and Maersk Line have already announced implementing the EBS for all sea cargo transports starting June 1st. This extra fee on fuel prices should prevent the shipping companies from going deeper into the red. The expectation is for other shipping companies to soon follow. It is unknown at this time how long the EBS will be maintained.

 

Emergency Bunker Surcharge per TEU

The height of the EBS is roughly equivalent for all shipping companies. On average, a surcharge of $55 per twenty-foot equivalent units (TEU) will be charged. This surcharge will be reflected in your sea cargo invoice. Ritra Cargo will keep a standard rate of $55 per TEU for this. This surcharge will apply to all sea cargo transports with a boarding date starting June 1st.

 

Questions and further information

Do you have more questions about the EBS after reading this article? Feel free to contact us.

 

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