Fuel for the Bunker Surcharge Fire

Drewry Maritime Research
Monday, September 16, 2013
Ocean Carrier BAFs From Asia to WCNA Since Jan 2012. Source: Drewry Maritime Research

The way carriers calculate bunker surcharges is often disputed by shippers, and no more so than now. Drewry Maritime Research explains.


Bunker surcharges should, proportionately, have been reducing faster than fuel prices because of the deployment of more efficient ships, but this does not appear to have happened for most carriers. The issue is highlighted by two recent developments in the container industry. Firstly, the arrival of Maersk’s first 18,000 teu vessels, and secondly, the availability of really cheap fuel in Russian ports again.


As explained in ‘Why size matters’ (http://ciw.drewry.co.uk/features/why-size-matters/#.Ui8TuL5wbiw), 18,000 teu vessels burn approximately 35% less fuel per teu carried on a round voyage basis between Asia and Northern Europe than 13,100 teu vessels ($218/teu versus $333/teu), and 13,100 teu vessels burn 20% less than a 9,000 teu vessels ($333/teu versus $415/teu), assuming constant speeds of 20 knots westbound and 14.6 knots eastbound, and that the bigger vessels will be less full. In turn, 9,000 teu vessels burn approximately 23% less than 6,000 teu vessels ($415/teu versus $542/teu).

The pace of change has been gathering momentum. In 3Q 11, the average size of vessel deployed between Asia and Northern Europe was just 9,158 teu, which increased by 8% in the next twelve months, up to 9,881 teu, and by another 9% in the next twelve months, up to over 10,800 teu. The change in the transpacific was slightly less, being 7% between 3Q 11 and 3Q 12, up to 6,264 teu, but only 1% between 3Q 12 and 3Q 13, up to 6,320 teu.
This means that bunker surcharge levels should have been falling faster than fuel prices since 3Q 12, which is not immediately apparent from Figures below – except for Maersk Line, due to the dramatic revision of its Standard Bunker Adjustment Factor (SBF) formula on 4 June, 2013, which explains why overall averages have subsequently dropped.


For more information, Email: simonr@drewry.co.uk

 

  • Bunker Prices and Carrier BAF: Asia-WCNA. Note: *Based on average of Singapore and Rotterdam. Source: Drewry Maritime Research

    Bunker Prices and Carrier BAF: Asia-WCNA. Note: *Based on average of Singapore and Rotterdam. Source: Drewry Maritime Research

  • Asia to N Europe BAFs Since Jan 2012. Source: Drewry Maritime Research

    Asia to N Europe BAFs Since Jan 2012. Source: Drewry Maritime Research

  • Bunker Prices and Carrier BAF: Asia-North Europe. Source: Drewry Maritime Research

    Bunker Prices and Carrier BAF: Asia-North Europe. Source: Drewry Maritime Research

  • Bunker Prices and Carrier BAF: Asia-WCNA. Note: *Based on average of Singapore and Rotterdam. Source: Drewry Maritime Research
  • Asia to N Europe BAFs Since Jan 2012. Source: Drewry Maritime Research
  • Bunker Prices and Carrier BAF: Asia-North Europe. Source: Drewry Maritime Research
Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Transpacific Box Shippers Plan Freight Rate Rise

A container shipping organisation urged companies on Wednesday to raise Asia-U.S. freight rates by at least $600 per 40-foot container (FEU) from Jan. 15, corresponding to an increase of 26.

Container Volumes on the Rise in South Carolina

Container volume up 13 percent at South Carolina Ports Authority; Charleston benefiting from federal appropriations    The SC Ports Authority announced another

Liebherr Expects Turnover Dip

For the 2014 business year, the Liebherr Group is currently anticipating an overall turnover of 8,866 million euros (2013: 8,964 million euros). In the area of construction machines and mining,

Fuels & Lubes

INTERTANKO Launches ECA Bunker Surcharge Clauses

INTERTANKO’s documentary committee has launched bunker surcharge clauses for Emission Control Areas (ECA).   Rising bunker prices due to rising oil prices and

WCI Applauds Barge Diesel Fuel User Fee Increase

Waterways Council, Inc. (WCI) and its members and stakeholders applauded the Senate’s passage, by a vote of 76 to16, of a 9-cent increase to the barge diesel fuel user fee.

USCG Addresses Future of Marine Fuels

The future of marine fuels from the Liquefied Gas Carrier National Center of Expertise   The Pacific Merchant Shipping Association hosted The Future of Marine

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1647 sec (6 req/sec)