Shippers Embrace ‘Tough Times’ Amid Spiraling Bunker Surcharges

With the oil prices heading north again, ocean carriers are preparing to ramp up low-sulphur fuel surcharges to add to the misery of shippers struggling with sky-high freight rates, surcharges and premium fees, reports the Loadstar.

Brent crude & HSFO prices take a hike

The price of Brent crude has increased by 41% since early September, to $55 a barrel, with an 8% spike alone last week driven by Saudi Arabia’s pledge to cut output.

During the same period, heavy fuel oil (HFO), consumed by ships...

https://mfame.guru/shippers-embrace-tough-times-amid-spiraling-bunker-surcharges/

Top time sucks in ocean shipping

Bill Rooney, the vice president of strategic development for Kuehne + Nagel, told the Agriculture Transportation Coalition (AgTC) this week that requests for quotes (RFQs) are “a good idea gone bad.”

“Number 2 on my list of things that suck up more time without adequate payoff are RFQs,” Rooney said. “Many of them are way too complicated. … It’s in many cases a process that’s really pretty bad. As they’re conducted today, many RFQs lead to faulty and suboptimal business decisions.”

Rooney said he...

https://www.freightwaves.com/news/top-time-sucks-in-ocean-shipping

Navigating service contract negotiations during COVID-19

This is no ordinary year for American shippers and freight forwarders that are attempting to finalize their annual ocean service contracts with the container carriers.

The uncertainty of how much cargo will be available from the shippers and the amount of capacity offered by the carriers for the next contract season, which generally starts in May, remains anyone’s guess in the face of the ongoing coronavirus pandemic.

“The biggest obstacle we face in service contract negotiations this year is the...

https://www.freightwaves.com/news/navigating-service-contract-negotiations-during-covid-19

APL to adjust Bunker Surcharge on the Trans-Pacific Eastbound trade

Effective 1 July 2019, Bunker Adjustment Factor (BAF) – also known as Bunker Surcharge (BSC) – for all Hawaii-bound cargo will be adjusted to align with the BAF of all cargo bound for the U.S. West Coast.

In the meantime, APL will quote rates subject to the U.S. West Coast BAF quantum in Quarter 2. Existing contracts that are subject to APL’s current Hawaii BAF will also be adjusted to align with the said quantum, details below:

Origin: Asia, Australia, East Africa, Middle East, New Zealand,...

https://container-news.com/apl-bunker-surcharge-trans-pacific-eastbound-trade/

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