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Container carrier Hapag-Lloyd has announced that it will be introducing an 'interim fuel participation' fee, effective April 16 2012, due to the 'substantial increase in bunker prices'.

The surcharge will cover trade from North Europe and the Mediterranean to East Asia. It will initially be set at USD 200 per TEU and will float on a monthly basis in line with the Hapag-Lloyd Bunker Charge. The fee will apply to all dry and reefer cargo.

North Europe comprises North West Continent, the U.K., Scandinavia, Baltic and European ports of Russia.

Mediterranean comprises the West Mediterranean, East Mediterranean, Black Sea and North Africa.

East Asia comprises Japan, Republic of Korea, Taiwan, Hong Kong, China (PRC), Macao, Singapore, Malaysia, Indonesia, Thailand, Philippines, Laos, Cambodia, Vietnam, Brunei, and Russian Pacific Ports of Vladivostok and Vostochny.

Bunker Costs

Last week Hapag-Lloyd announced that the average bunker price was up 34 percent in 2011 compared to the previous year.

"The average bunker price over the year was USD 605/tonne, which is more than USD 150/tonne higher than the year before, an increase of 34 percent," the German ocean carrier said.

Commenting on the current financial year and the effect of higher marine fuel prices on freight rates, Hapag-Lloyd said: "In the first few weeks of the current financial year Hapag-Lloyd has performed in line with expectations. Further increases in bunker costs have put a strain on what is anyway the weaker season at the start of the year. High energy costs will remain a challenge for the entire industry throughout 2012. This difficult environment made it imperative to announce a sharp increase in freight rates beginning in March and April, which the market has accepted."

"These increases are unavoidable in order to get back to adequate and sustainable rates again, especially as the bunker price has gone up even further," said Michael Behrendt, chief executive officer of Hapag-Lloyd. "This is also in the interest of our customers, because in the long run it is the only way shipping companies can offer a comprehensive, dependable service."