UPDATE: Introduction of Emergency Bunker Surcharge (EBS)

Published on 25 May 2018

Dear customer,

We would like to keep you updated you on the previous communication regarding the Emergency Bunker Surcharge (EBS) with revised data.

As mentioned, 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. 

Due to the nature of the situation, Maersk Line is introducing an Emergency Bunker Surcharge (EBS) as a necessary action to ensure a continued sustainable service to our customers. 

EBS will be applicable to all cargo on all tradesexcept for export shipments from China1. The surcharge will be effective 1st June 2018 for non-regulated corridors and 1st July 2018 for regulated corridors.2

The EBS surcharge tariffs are as follows:

Currency DRY + Special Equipment REEF
20' 40' 45' 20' 40' 45'
USD 60 120 120 90 180 180
EUR 50 100 100 75 150 150
GBP 45 90 90 65 130 130

 

Tariff adjustment mechanism

The EBS tariff communicated above is based on a bunker price of USD 440 (IFO380 in Rotterdam). EBS tariff is subject to change as per below trigger events:

  • Should the bunker price (IFO380 in Rotterdam) increase to a level of USD 530, EBS tariffs will be multiplied by a factor of 2.0.
  • Should the bunker price (IFO380 in Rotterdam) decrease to a level of USD 370, EBS tariffs will be zero.

1 Export shipments from Mainland China is excluded from EBS, whereas EBS will apply in Hong Kong and Taiwan.

2 Regulated corridors include imports/exports from: US, Puerto Rico, American Samoa, Colombia and Taiwan.

For your reference, we have also included the levels and the rate structure for some sample corridors to/from Europe valid from today until further notice. These charges may be subject to change in the future but we will make sure to notify you accordingly.

Origin Destination OF OHC
20 DRY 40 DRY 40 HC 45 HC 20 REEF 40 HREEF 20 Special 40 Special 20 DRY 40 DRY 40 HC 45 HC 20 REEF 40 HREEF 20 Special 40 Special
Rottedam Shanghai 680 USD 850 USD 850 USD 1350 USD 1860 USD 2400 USD 680 USD 850 USD Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive
Jebel Ali Rotterdam 750 USD 900 USD 900 USD 1200 USD 1150 USD 1750 USD 750 USD 900 USD 1050 AED 1470 AED 1470 AED 1470 AED 1050 AED 1470 AED 1050 AED 1470 AED
Origin Destination DHC SBF
20 DRY 40 DRY 40 HC 45 HC 20 REEF 40 HREEF 20 Special 40 Special 20 DRY 40 DRY 40 HC 45 HC 20 REEF 40 HREEF 20 Special 40 Special
Rottedam Shanghai 625 CNY 980 CNY 980 CNY 1380 CNY 785 CNY 1185 CNY 785 CNY 1185 CNY Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive
Jebel Ali Rotterdam 210 EUR 210 EUR 210 EUR 210 EUR 300 EUR 300 EUR 210 EUR 210 EUR Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive
Origin Destination ERS LSS
20 DRY 40 DRY 40 HC 45 HC 20 REEF 40 HREEF 20 Special 40 Special 20 DRY 40 DRY 40 HC 45 HC 20 REEF 40 HREEF 20 Special 40 Special
Rottedam Shanghai Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive 20 USD 40 USD 40 USD 40 USD 20 USD 40 USD 20 USD 40 USD
Jebel Ali Rotterdam Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive Inclusive
Origin Destination PSS
20 DRY 40 DRY 40 HC 45 HC 20 REEF 40 HREEF 20 Special 40 Special
Rottedam Shanghai 0 USD 0 USD 0 USD 0 USD 0 USD 0 USD 0 USD 0 USD
Jebel Ali Rotterdam 0 USD 0 USD 0 USD 0 USD 0 USD 0 USD 0 USD 0 USD
  • Please note, the above rates are also subject to other applicable surcharges, including local charges and contingency charges.
  • The mentioned surcharge acronyms mean: OF (Ocean Freight), OHC (Origin Terminal Handling Charge), DHC (Destination Terminal Handling Charge), ERS (Emergency Risk Surcharge), SBF (Standard Bunker Adjustment Factor), LSS (Low Sulphur Surcharge) and PSS (Peak Season Surcharge).
  • These rates are unaffected by, and do not affect, any tariff notified, published or filed in accordance with local regulatory requirements.
  • For trades subject to the US Shipping Act or the China Maritime Regulations, quotations or surcharges that vary from the Maersk Line tariff shall not be binding on Maersk Line unless included in a service contract or service contract amendment that has been filed with the Federal Maritime Commission (FMC) or the Shanghai Shipping Exchange (SSE), as applicable.

We assure you we will follow the market trends closely and adjust the tariffs as soon as the bunker price makes that possible.

If you have any further question, please feel free to reach out to our local sales or customer service representative. You can find an updated contact list of our offices on maerskline.com

Sincerely,

Maersk Line

Category: Advisories