Introduction of Emergency Bunker Surcharge

Posted on: 5 Jun 2018

To Our Valued Clients,


The increase in bunker price in 2018 has been significantly higher than what had been expected and has now reached a level of 440 USD/ton in Europe, the highest since 2014. The increase is more than 20% compared to the beginning of 2018 and this unexpected development means that it is no longer possible for carriers to recover bunker costs through the standard bunker adjustment factors.

Due to the unsustainable nature of the situation, Carriers have decided to introduce an Emergency Bunker Surcharge (EBS) as a necessary action to ensure a continued sustainable service to Shippers.

EBS will be charged as a separate amount to ocean freight and is applicable to all cargo globally, with a shipped on board date on or after 1st June 2018

For LCL Shipments EBAF will be charged @ USD5.00 per cbm

Surcharge Levels will be Reviewed on a Monthly basis and are calculated using the below Tariff adjustment mechanism:

The EBS tariff communicated above is based on a bunker price of USD 440 (IFO380 in Rotterdam). EBS tariff is subject to change as per below trigger events:

Should the bunker price (IFO380 in Rotterdam) increase to a level of USD 530, EBS tariffs will be multiplied by a factor of 2.0.

Should the bunker price (IFO380 in Rotterdam) decrease to a level of USD 370, EBS tariffs will be zero.

We trust that all of the above is clear but if you do have any questions or queries please do not hesitate to contact us and we will assist in any way possible.

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