Fri 25 May 2018, 13:55 GMT

Maersk Line introduces Emergency Bunker Surcharge


Shipper unable to recover bunker costs through standard bunker adjustment factors due to price jump.


Image credit: Flickr
Maersk Line has confirmed that it will be introducing an Emergency Bunker Surcharge (EBS) next month following the recent jump in the price of marine fuel.

In a statement, Maersk Line said: "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 the year and this unexpected development means it is no longer possible for us to recover bunker costs through the standard bunker adjustment factors."

Maersk Line's EBS tariff is based on an IFO 380 price of $440 in Rotterdam. According to Bunker Index price data for May 25, IFO 380 in Rotterdam was being sold at $430-434 per tonne - down from the previous day's $438-$440.

The boxship operator's EBS tariff is subject to change based on the following trigger events:

- Should IFO 380 in Rotterdam increase to $530, EBS tariffs will be multiplied by a factor of 2.0.

- Should IFO 380 in Rotterdam decrease to $370, EBS tariffs will be zero.

The EBS will be applicable to all cargo on all trades - except for export shipments from mainland China. The EBS will apply in Hong Kong and Taiwan.

The surcharge is due to become effective from June 1, 2018, for non-regulated corridors and July 1, 2018, for regulated corridors.

As Bunker Index previously reported, Maersk's Ocean segment consumed 3.1 million tonnes of marine fuel in the first quarter of 2018 (representing a year-on-year rise of 28.0 percent), spending just under $1.2 billion.

The average price spent on bunkers by Ocean in Q1 was $382 per tonne - a rise of $62, or 19.3 percent, on the previous year, and a quarter-on-quarter increase of $42, or 12.4 percent.

Maersk Ocean includes the ocean activities of Maersk's Liner Business (Maersk Line, MCC, Seago Line and Sealand) together with Hamburg Sud brands Hamburg Sud and Alianca as well as strategic transshipment hubs under the APM Terminals brand.


Windward Hamburg vessel. VARD delivers final CSOV to Windward Offshore, completing series  

Methanol-ready Windward Hamburg joins the fleet as VARD completes delivery of four purpose-built CSOVs.

RSP and Dynamic People partnership signing. Rotterdam Shore Power partners with Dynamic People to digitalise operations  

The shore power developer is building a Microsoft-based digital platform to support its growth.

Dorian LPG logo. Dorian LPG orders three dual-fuel VLGCs from Hanwha Ocean in $345m deal, secures $368.4m credit facility  

US-listed VLGC operator has also fixed 99% of its fleet days at above $88,000 per day.

Seto Azure vessel. Osaka Gas completes first ship-to-ship LNG bunkering in Osaka Bay  

Bunkering vessel Seto Azure is used to supply an LNG-fuelled car carrier at Kobe.

EPS vessels naming ceremony. Eastern Pacific Shipping takes delivery of three LNG dual-fuel Newcastlemaxes five months ahead of schedule  

EPS receives Mount Victoria, Mount Yulong and Mount Wuyi from Qingdao Beihai Shipbuilding.

EmissionLink logo. EmissionLink urges demand aggregation to unlock zero-emission fuel investment  

MD calls for pooled demand to unlock investment and accelerate alternative fuel availability for shipping.

Hydrogen-fuelled vessel render. GMI awards eCap Marine contract for two additional hydrogen-powered bulk carriers  

3,000-DWT newbuilds to be built in India and enter service in Norwegian waters in 2029.

Navios Turquoise vessel. Navios Partners takes delivery of second LNG- and methanol-ready boxship in newbuilding series  

Handover of 7,900-TEU Navios Turquoise follows delivery of sister ship Navios Cyan in May.

Yang Ming and Hanwha Ocean contract signing ceremony. Yang Ming orders six 13,000-TEU LNG dual-fuel vessels from Hanwha Ocean  

Taiwanese carrier expands green fleet with ammonia-ready newbuilds due for delivery by 2029.

AiP award ceremony for 12,500-cbm LNG bunker vessel design. LR awards approval in principle to Chinese yard for 12,500-cbm LNG bunker vessel design  

Lloyd’s Register validates new LNG bunkering vessel concept by CSSC Huangpu Wenchong at SMM 2026.