APL: New Fuel Surcharge to Reflect Slow-steaming

(Press Release)
Friday, June 24, 2011

Container shipping line APL has announced a new fuel surcharge formula in the Trans-Pacific Trade that reflects the financial impact of slow-steaming, the industry-wide practice of reducing vessel speed to reduce fuel consumption, control costs and reduce emissions.  
The new formula results in a somewhat lower bunker surcharge, effective July 1, 2011, than would have been assessed under the previous formula which was based on a guideline from the Transpacific Stabilization Agreement. For example:
The surcharge for a standard 40-foot standard container shipped from Asia to the U.S. West Coast drops to $538 from $568.
The surcharge for a standard 40-foot standard container shipped to the U.S. East Coast drops to $1,049 from $1,107.
APL said it has developed the new surcharge formula to reflect the cost savings as well as the added capital costs associated with slow-steaming. As ships reduce speed, additional vessels are generally required to be added to each loop to maintain weekly arrival schedules.
“While not all our services are slow-steaming, many are,” said Bob Sappio, Vice President of Pan-American Trades at APL. “Considering the fuel consumption savings from slow-steaming, and the additional asset cost required, we have developed a more transparent approach, the result of which is some reduction in the cost but just as importantly, better visibility for our customers of the impact of slow-steaming.”
APL said its surcharge will continue to rise and fall in line with fuel price fluctuations. But it’s changing the formula used to adjust the surcharge.
For example, until now, every $20-per-ton movement in fuel price resulted in a $20 surcharge adjustment for West Coast cargo. With the new formula, APL said the adjustment will only be $14. For East Coast cargo, the sensitivity is reduced from a $38 surcharge adjustment for every $20 per ton movement in fuel price to a $30 adjustment.

 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

VEB Guarantees $3 Bln of Yamal LNG Debt

Russian development bank VEB said on Friday it had provided a guarantee for $3 billion of debt to the Yamal liquefied natural gas (LNG) project, led by Russian gas firm Novatek.

US Oil Drillers Cut Rigs after 3 Weeks of Additions

U.S. oil drillers cut rigs this week for a 20th week this year after three weeks of additions, according to a closely followed report on Friday, as crude prices

World Stocks Tumble as Britain Votes for EU Exit

Global capital markets reeled on Friday after Britain voted to leave the European Union, with $2 trillion in value wiped from equity bourses worldwide, while money

Fuels & Lubes

Conrad Shipyard Forms LNG Business Unit

Conrad Shipyard has formed a new business unit focused on LNG projects.   Conrad, builder of North America’s first LNG bunker barge scheduled for 2017 delivery,

Klüber Synthetic Gear Oils Offer Max Efficiency

Klüber Lubrication, manufacturer of specialty lubricants, provides high-performance gear oils that are based on high-grade raw materials and advanced additives,

Alfa Laval Announced Plans for SMM 2016

At SMM 2016, Alfa Laval will mark the 100th anniversary of its first marine separator, and present marine customers with more new solutions.   Over the course of a century,

Container Ships

MSC Jade Sails with MAN's Biggest Engine

The largest and most powerful engine from MAN Diesel & Turbo’s portfolio ever designed and built has entered service.   Built by Doosan Engine in Korea and rated at 75,

Slowing Shipping Fleet Growth to Ease Officer Shortage

Slowing growth in the size of the shipping fleet will reduce the shortage of officers over the coming years, according to the latest Manning report published by global shipping consultancy Drewry.

Kuriyama Joins Matson Board of Directors

The Board of Directors of Matson, Inc. has appointed Stanley Kuriyama as a director of the company, effective June 23, 2016.   Kuriyama is the Executive Chairman of Alexander & Baldwin, Inc.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Offshore Oil Port Authority Ship Electronics Ship Repair Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0834 sec (12 req/sec)