British freight group fumes over sulphur surcharge

BIFA calls shipping lines’ fees unjustified and “blatant profiteering.”

British freight group fumes over sulphur surcharge

BIFA calls shipping lines’ fees unjustified and “blatant profiteering.”

British freight group fumes over sulphur surcharge

BIFA calls shipping lines’ fees unjustified and “blatant profiteering.”

 
   The British International Freight Association (BIFA), the trade association for U.K. freight forwarding and logistics companies, calls the container shipping industry’s imposition of a sulphur surcharge as unjustified and blatant profiteering.
   A.P. Møller – Maersk announced it is implementing a bunker adjustment factor (BAF) surcharge on Jan. 1, a full year ahead of the global sulphur cap on marine emissions that enters into force in 2020, BIFA said.
   BIFA said this could lead to prices for a 40-foot container on an Asia-to-North Europe route being hiked by anywhere from $480 to $840 — depending on fuel price — or by up to $683 from Asia to the U.S. West Coast.
   “By any measure, these are very major increases and they will be received negatively by BIFA members’ customers,” said Robert Keen, BIFA director general.
   “While the shipping operators may say that the new BAFs are needed to cover the cost of switching to low-sulphur fuels or fitting exhaust scrubbers, rises of this magnitude are unjustified and could be construed as blatant profiteering by shipping lines determined to exploit the situation.”

   BIFA said it also would prefer any increases that are necessary to be consolidated within freight rates and with any required fluctuation being managed against that figure.
He added: “BIFA members are now faced with the task of explaining yet another surcharge to their customers and what the rationale behind it is. The sulphur surcharge is bound to be extremely unpopular,” Keen said. “Sometimes there is an unfair perception that our members are to blame.”
   BIFA said this is only the latest in a series of surcharges imposed by the shipping lines, and it has long campaigned against them.
   Earlier this year, container shipping companies announced they would be levying “emergency” bunker surcharges in response to rising fuel costs, BIFA said.
   “Forwarders do not like shipping line surcharges. We have been challenging — and will continue to challenge — their legitimacy on behalf of our members and their customers,” Keen said.
   He said past attempts by shipping lines to hike rates have included surcharges for equipment imbalance, peak season and currency, along with other fuel surcharges.

   Keen said the number of surcharges and fees continues to grow and asserted that many of them come with no real explanation or justification.

I would so argue that the rainy day is today for us. We’re in a critical situation where we’re facing catastrophic failures with our infrastructure.

The U.S. international trade goods and services deficit was $49.4 billion in February, down $1.8 billion from January's revised figures, according to U.S. Census Bureau and the U.S. Bureau of Economic Analysis.

Most Popular
Latest News
Social Media

Loading...

Helm Operations joins Volaris Group

Helm Operations joins Volaris Group

Embed this story

Share Code Version 1

This version will embed the story headline and includes HTML fallback protection, ensuring the story will display even if some users decide to disable javascript in their browsers.

Copy & Paste the following code to embed this story on your website:

Preview

British freight group fumes over sulphur surcharge

BIFA calls shipping lines’ fees unjustified and “blatant profiteering.”

on Sep 21, 2018AmericanShipper.com

Share Code Version 2

This version will embed the story headline without any styling applied. Use this version if you will use your own custom styling on your website. This version also includes HTML fallback protection.

Copy & Paste the following code to embed this story on your website:

Preview

British freight group fumes over sulphur surcharge

BIFA calls shipping lines’ fees unjustified and “blatant profiteering.”

on Sep 21, 2018AmericanShipper.com