THE European Shippers' Council (ESC) and the Global Shippers Forum (GSF) have criticised the move by container shipping companies Maersk, MSC and CMA CGM for their plans to implement fuel surcharges they say will help cover costs associated with meeting 2020 global sulphur deadlines.
The ESC said in a press statement that 'carriers impose it unilaterally without any negotiation with shippers and ignore a market approach to the global problem. This does not set an ideal cooperation scenario.'
The ESC said it is monitoring bunker surcharges and encourages shipping lines to negotiate all freight costs with shippers.
'Within the new commercial framework of logistics stakeholders, the imposition of bunker surcharges restrains cooperation and lacks transparency. What is most important, it decreases potential innovative solutions and results in a low acceptance by shippers,' the ESC said.
The GSF said it is suspicious of Maersk's announcement of a fuel surcharge beginning January 1 'to recover presumed costs from the introduction of low-sulphur marine fuel.'
'Based on the information released by Maersk, the new charges, which are additional to agreed contract rates, are based on two factors: an average cost of fuel and a 'trade factor' that upscales the costs on head trades and discounts the fuel cost on reverse trades,' GSF said in a press release.
'But because the charge is per box, the greater number of revenue-earning boxes sailing west will collectively pay far more than they need to in order to compensate for the same boxes returning east when empty.'
GSF said Maersk will in effect be applying higher-than-average surcharges on its most profitable routes.
'GSF would encourage Maersk to consult with customers and reconsider their strategy. These new charges may be all about low-sulphur fuel, but they still stink to us.'
James Hookham, GSF secretary general, said: 'GSF will be taking this piece of financial engineering apart piece by piece as we suspect this has more to do with rate restoration than environmental conservation.
'Some of Maersk's biggest competitors are taking this different approach, and customers will be looking at the options and voting with their wallets,' Mr Hookham was quoted in a American Shipper report.
The ESC said in a press statement that 'carriers impose it unilaterally without any negotiation with shippers and ignore a market approach to the global problem. This does not set an ideal cooperation scenario.'
The ESC said it is monitoring bunker surcharges and encourages shipping lines to negotiate all freight costs with shippers.
'Within the new commercial framework of logistics stakeholders, the imposition of bunker surcharges restrains cooperation and lacks transparency. What is most important, it decreases potential innovative solutions and results in a low acceptance by shippers,' the ESC said.
The GSF said it is suspicious of Maersk's announcement of a fuel surcharge beginning January 1 'to recover presumed costs from the introduction of low-sulphur marine fuel.'
'Based on the information released by Maersk, the new charges, which are additional to agreed contract rates, are based on two factors: an average cost of fuel and a 'trade factor' that upscales the costs on head trades and discounts the fuel cost on reverse trades,' GSF said in a press release.
'But because the charge is per box, the greater number of revenue-earning boxes sailing west will collectively pay far more than they need to in order to compensate for the same boxes returning east when empty.'
GSF said Maersk will in effect be applying higher-than-average surcharges on its most profitable routes.
'GSF would encourage Maersk to consult with customers and reconsider their strategy. These new charges may be all about low-sulphur fuel, but they still stink to us.'
James Hookham, GSF secretary general, said: 'GSF will be taking this piece of financial engineering apart piece by piece as we suspect this has more to do with rate restoration than environmental conservation.
'Some of Maersk's biggest competitors are taking this different approach, and customers will be looking at the options and voting with their wallets,' Mr Hookham was quoted in a American Shipper report.