An intense battle could be brewing between shippers and container lines over the introduction of a controversial emergency bunker surcharge. Container lines – including Maersk Line, the Mediterranean Shipping Company (MSC) and CMA CGM – announced the emergency bunker surcharge last month due to a massive jump in fuel costs as a consequence of rising Brent crude oil prices.
“The use of emergency surcharges is a none-too-subtle attempt to impose non-negotiable charges on customers,” said Chris Welsh, secretary general of the Global Shippers’ Forum. “It is incumbent on container carriers to provide their customers with full transparency regarding bunker surcharge costs, and to explain why an emergency surcharge is warranted on top of existing bunker surcharge mechanisms.”
Welsh explained that the container lines typically allowed for changes in fuel costs in their contracts with the bunker adjustment factor (BAF) – a floating rate that rises and falls with bunker price assessments at key ports along their routes.
The European Shippers’ Council announced last weekend that it was preparing to bring a case against the carriers before the European Competition Commission (ECC). Shippers will be eagerly awaiting the outcome.
INSERT AND CAPTION
The use of emergency surcharges is a none-too-subtle attempt to impose non-negotiable charges on customers. – Chris Welsh
