Westbound Transpacific Stabilization Agreement (WTSA) container shipping lines have announced that they are raising bunker fuel surcharges across all dry commodity categories on the US-Asia trades to recover rising fuel costs.
"Fuel today accounts for half or more of total fixed operating cost per transpacific sailing. World bunker fuel prices have more than doubled since 2005, and increased by 65 per cent during 2007 alone," said the WTSA.
"Container shipping lines have taken steps to recover rising fuel costs, by collecting a greater share of their published bunker fuel surcharges in cases where those surcharges have been partially or fully absorbed into ocean freight rates," a statement issued on behalf of member lines said.
Starting April 1, WTSA carriers intend to collect an additional US$300 per FEU in bunker surcharges towards WTSA's published bunker surcharge level for agricultural products, chemicals, clay, forest products, hay, metal scrap, plastic scrap and freight-all-kinds (FAK) mixed container shipments.
Effective from the same date, a US$200 per FEU adjustment will be applied to collected surcharge levels for wastepaper shipments. Proportionate adjustments will be applied to shipments involving other equipment sizes, and to cargo not rated on a per-container basis.
"The scheduled adjustments still do not achieve full recovery of fuel cost impacts reflected in the Agreement's published surcharge, which is set according to an established formula and adjusted monthly as world bunker fuel prices fluctuate. The formula has been in place, in its current form, since 2002 and is not intended to recover carriers' entire fuel costs but rather to address price volatility that can add significantly to transpacific operating costs.
WTSA members are: APL, Hyundai Merchant Marine, Cosco Container Lines, "K" Line, Evergreen Line, NYK, OOCL, Hanjin Shipping, Hapag Lloyd and Yangming Marine Transport.
"Fuel today accounts for half or more of total fixed operating cost per transpacific sailing. World bunker fuel prices have more than doubled since 2005, and increased by 65 per cent during 2007 alone," said the WTSA.
"Container shipping lines have taken steps to recover rising fuel costs, by collecting a greater share of their published bunker fuel surcharges in cases where those surcharges have been partially or fully absorbed into ocean freight rates," a statement issued on behalf of member lines said.
Starting April 1, WTSA carriers intend to collect an additional US$300 per FEU in bunker surcharges towards WTSA's published bunker surcharge level for agricultural products, chemicals, clay, forest products, hay, metal scrap, plastic scrap and freight-all-kinds (FAK) mixed container shipments.
Effective from the same date, a US$200 per FEU adjustment will be applied to collected surcharge levels for wastepaper shipments. Proportionate adjustments will be applied to shipments involving other equipment sizes, and to cargo not rated on a per-container basis.
"The scheduled adjustments still do not achieve full recovery of fuel cost impacts reflected in the Agreement's published surcharge, which is set according to an established formula and adjusted monthly as world bunker fuel prices fluctuate. The formula has been in place, in its current form, since 2002 and is not intended to recover carriers' entire fuel costs but rather to address price volatility that can add significantly to transpacific operating costs.
WTSA members are: APL, Hyundai Merchant Marine, Cosco Container Lines, "K" Line, Evergreen Line, NYK, OOCL, Hanjin Shipping, Hapag Lloyd and Yangming Marine Transport.