The European forwarders’ association CLECAT has joined the industry initiative for a neutral bunker adjustment factor (BAF) indexing mechanism that Drewry and the European Shippers’ Council (ESC) started last year.
In a statement issued today (30 June), Drewry said it will be working with the ESC and CLECAT ‘to promote the voluntary use of the indexing mechanism for fuel charges’. Drewry added that they also plan to ‘work on areas of cooperation, possibly covering further resources, transparency or easier standard contract practices for all stakeholders in the maritime and logistics sectors’.
Nicolette van der Jagt, Director General of CLECAT, commented: ‘This indexing mechanism will help improve transparency and fairness in how fuel costs are calculated which will benefit all stakeholders in the supply chain. We hope that this will facilitate discussions with carriers and a better understanding of BAF indexing methods.’
Jordi Espín, Policy Manager of ESC, added: ‘Shippers and Freight Forwarders working together to foster transparency and shared views on how to asses fuel costs brings the level playing field to a new framework of cooperation where visibility and collaboration will expand throughout the whole maritime supply chain. Current times require stakeholders to move away from silo perspectives and promote inclusive views to better integrate the maritime transport flow.’
CLECAT has raised the issue of BAF transparency on a number of occasions and in April it voiced concern that carriers were using the BAF as ‘a revenue-raising tool as well as a cost-recovery’ during the COVID-19 crisis.