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Member lines of the Transpacific Stabilization Agreement(TSA) have confirmed that their floating bunker fuel surcharge will be raised to new record levels from September 1st.

TSA lines said the surcharge, which is adjusted on a monthly basis to reflect world fuel price fluctuations, has been increased to reflect record bunker prices that hit $767 per tonne in July, up from $500 per tonne at the start of the year and $296 per tonne at the beginning of 2007.

The surcharge increase comes at a time when marine fuel prices have dropped from peak levels recorded last month. The price of 380-cst in Singapore is currently over $80 lower than the record price of $760 per tonne reached on July 15th.

N.Y.K. Line Vice President and TSA revenue policy committee member Bill Payne emphasized that each month’s surcharge reflects average bunker fuel prices during a reporting period 30-60 days earlier, noting that this is done to comply with U.S. law requiring a minimum 30 days’ notice to the market in the event of a rate or surcharge increase.

“Carriers pay the higher fuel costs out of pocket as those costs rise, cushioning the impact on shippers, and then must pass them through after the fact,” Payne said in a statement. “The good news with a floating formula is that, as prices fall, customers will start to see savings 30 to 60 days out.”

Commenting on the current floating surcharge, APL Senior Vice President and RPC committee member, Bob Sappio said "The trans-Pacific trade is simply not sustainable as it is presently constituted; carriers must recover a greater percentage of actual dollars spent on fuel."

Members lines of the Transpacific Stabilization Agreement include APL, Ltd., China Shipping Container lines, CMA-CGM, COSCO Container Lines, Ltd., Evergreen Line, Hanjin Shipping Co., Ltd., Hapag Lloyd AG, Hyundai Merchant Marine Co., Ltd., Kawasaki Ksen Kaisha, Ltd. (K Line), Mediterranean Shipping Co., Mitsui, O.S.K. Lines, Ltd., Nippon Yusen Kaisha (N.Y.K. Line), Orient Overseas Container Line, Inc., Yangming Marine Transport Corp. and Zim Integrated Shippnig Services.