• 2018 September 21 14:09

    British International Freight Association fumes over sulphur surcharge

    The British International Freight Association (BIFA), the trade association for UK freight forwarding and logistics companies, has described the container shipping industry’s recent imposition of a ‘sulphur surcharge’ as unjustified and blatant profiteering.

    It follows an announcement by Danish giant AP Moller Maersk that it is introducing a new bunker adjustment factor (BAF) surcharge on 1 January 2019, a full year ahead of the global sulphur cap on marine emissions which enters into force on 1 January 2020.

    According to the shipowner, it could lead to prices of a 40 ft container on the Far East to North Europe route being hiked by anywhere between USD480 to USD840 (depending on fuel price), or by up to USD683 (depending on fuel price) from the Far East to US West Coast, for example.

    Robert Keen, BIFA Director General said: “By any measure, these are very major increases, and they will be received negatively by BIFA members’ customers.
    "While the shipping operators may say that the new BAFs are needed to cover the cost of switching to low sulphur fuels or fitting exhaust ‘scrubbers’, rises of this magnitude are unjustified and could be construed as blatant profiteering by shipping lines determined to exploit the situation.”

    BIFA would also prefer any increases that are necessary to be consolidated within freight rates and with any required fluctuation being managed against that figure.

    He added: “BIFA members are now faced with the task of explaining yet another surcharge to their customers, and what the rationale behind it is. The sulphur surcharge is bound to be extremely unpopular.

    The latest swingeing increase is only the latest in a series of surcharges imposed by the shipping lines, and BIFA has long campaigned against them.

    Earlier this year, leading container shipping companies announced almost in unison that they would be levying “emergency” bunker surcharges in response to rising fuel costs.

    “Forwarders do not like shipping line surcharges - we have been challenging, and will continue to challenge their legitimacy on behalf of our members – and their customers,” says Keen.

    Past attempts by lines to hike rates have included surcharges for equipment imbalance, peak season and currency, along with other fuel surcharges.

    Keen adds that the number of surcharges and fees continues to grow, many of them with no real explanation or justification.

    He added that while forwarders would continue to do all they can to minimise surcharges ultimately at least some of the cost had to be passed on to forwarders’ customers.




2018 October 16

18:33 Maersk Line announces new FAK rates from Mediterranean to West and Central Asia
18:03 ABS holds two seminars at the 58th Genoa International Boat Show
17:55 Throughput of port Kaliningrad in 9M’18 grew by 5% Y-o-Y to 10.65 million tonnes
17:36 Wärtsilä opens the first International Maritime Cyber Centre of Excellence in the world
17:03 CMA CGM announces Overweight Surcharge on Asia and India to Africa trades
16:56 Wärtsilä launches Acceleration Centre in Singapore and partners with MPA and PSA Marine to develop IntelliTug
16:40 Throughput of port Vyborg in 9M’18 up 22% Y-o-Y to 1.33 million tonnes
16:21 Throughput of port Primorsk in 9M’18 fell by 11% Y-o-Y to 39.80 million tonnes
16:03 Höegh LNG announces amendment of the Höegh Gallant time charter
15:44 LUKOIL starts construction of facilities at Rakushechnoye field
15:22 Throughput of port Vysotsk in 9M’18 climbed by 6% Y-o-Y to 13.69 million tonnes
15:03 Avatar Logistics initiates cooperation with Sand & Grus AB Jehander and buys the vessel MS Jehander
14:41 Throughput of port Ust-Luga in 9M’18 declined by 5% Y-o-Y to 72.38 million tonnes
14:20 CMA CGM announces GRR from Far East to West Africa
14:03 Lithuanian Railways, Metrans and the Port of Hamburg strengthen relations
13:52 Throughput of Port St. Petersburg up 12% to 44.22 million tonnes in 9M’18
13:06 Scorpio Bulkers announces update on scrubbers
12:39 Project 22800 small missile ship Burya to be floated out on 23 October
12:13 Rolls-Royce and Intel announce autonomous ship collaboration
11:55 The Port of Riga outlines a vision for future development of Spilve Meadows
11:31 Ørsted selects GeoSea for Borssele 1 & 2 foundation and turbine transport and installation
11:14 Jan De Nul will dredge access channel to Guayaquil Port
11:11 RF Navy’s Baltic Fleet detachment completed tasks in Mediterranean Sea
10:59 Damen Maaskant Shipyards Stellendam celebrates 70 years and bids farewell to director Frits van Dongen
10:50 Detachment of RF Navy's Pacific Fleet completes visit to Republic of Korea
10:28 WMU holds needs assessment workshop in Jordan
10:02 Brent Crude futures price up 0.31% to $81.03, Light Sweet Crude – up 0.11% to $71.86
09:43 IMO ​pushing forward with tackling greenhouse gas emissions
09:17 Baltic Dry Index is up to 1,584 points

2018 October 15

18:23 MOL joins hands with partners to launch FOCUS project
17:59 Moscow to host a conference on construction of LNG-powered and LNG bunker ships on October 24
17:46 Algoma announces cancellation of Croatian newbuilds contracts
17:05 Klaveness Combination Carriers AS registered on NOTC
16:56 Tall ships arrive at Port of Ipswich as part of 'Race of the Classics'
16:37 Coast Guard ends search after plane crash victims bodies are located
16:20 Krasnoye Sormovo shipyard delivers 8,140 DWT Pola Fiva, fifth dry cargo carrier of Project RSD59
16:04 DNV GL leads consortium to update Carbon Trust Floating LiDAR Roadmap
15:34 East Mediterranean projects take steps towards adoption of alternative fuels
15:04 NYK approves Japan Climate Action Summit declaration
14:51 Wärtsilä LNG solutions featured on environmentally advanced cruise ship
14:35 Coast Guard sets port condition X-ray in Georgia, South Carolina
14:17 Andrey Shunin appointed as General Director of Caspian Energy Management
13:28 Cooperation for sustainable shipping in the Mediterranean
12:41 ACL christens its newest G4 vessel, the Atlantic Sun
12:13 Kongsberg Digital and KPMG launch new complete cybersecurity partnership for the maritime industry
11:55 Nevsky Shipyard took part in Offshore Marintec Russia
11:19 ABS leads industry discussion on digitization, safety and compliance
11:12 New shipping route links Gdansk and Scandinavia
10:51 Port of Gdansk considered as transport hub for Slovakia
10:29 Brent Crude futures price up 1.21% to $81.4, Light Sweet Crude – up 1.04% to $72.08
10:10 Tuco Marine Group to build a multipurpose first responder boat for Hovedstadens Beredskab I/S
09:53 Baltic Dry Index is up to 1,579 points
09:34 Gazprom and Shell discuss next steps in Baltic LNG project
09:15 Throughput of port Helsinki (Finland) in 9M'18 up 8.4% Y-o-Y to 11.38 million tonnes (table)
08:07 PIL terminates all calls to Iran due to US sanctions
07:06 ChainPORT hackathon held for the first time simultaneously in the ports of Antwerp and Los Angeles
06:16 Vinalines posts profit of US$900,000 in the first nine months of 2018

2018 October 14

09:19 CMA CGM announces FAK rates from Asia to North Africa
09:17 CMA CGM announces FAK rates from Asia to the Mediterranean
09:16 Port of Corpus Christi moves record tonnage in first nine months of 2018