Following the recent application of emergency bunker surcharges by a number of large container lines, Ocean Network Express has now announced the introduction of its own Bunker cost Recovery Surcharge (BRS); the charge will not be applied to customers with a mutually agreed floating BAF mechanism in place as part of their contract terms.
Last month saw the announcment of emergency bunker surcharges by Maersk, CMA CGM and MSC, citing rising bunker costs. In turn, ONE notes that fuel prices have increased by over 25% during 2018 and ‘could escalate still further’.
The increase in bunker costs has ‘greatly impacted our cost base,’ said the company.
The new surcharge will be rolled out from 1 July, and ‘the BRS Quantum will vary by trade lane and will be derived by a logical and equitable calculation mechanism,’ explained ONE.