THE British International Freight Association (BIFA) that represents freight forwarders and logistics companies has accused shipping lines of exploiting the global rule to cap sulphur content in marine fuel at 0.5 per cent in 2020 as an excuse to introduce new sulphur surcharges.
The retort came in response to AP Moller-Maersk's announcement that it is implementing a bunker adjustment factor (BAF) surcharge on January 1, one year before the International Maritime Organization's new rule comes into effect.
BIFA said this could lead to prices for a 40-foot container on the Asia-North Europe trade lane rising between US$480 and $840 - depending on fuel price - or by up to $683 on the Asia-US west coast trades, reported American Shipper.
'By any measure these are very major increases and they will be received negatively by BIFA members' customers,' said BIFA director general Robert Keen.
'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.
Mr Keen continued: '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.'
Earlier this year container shipping companies announced they would be levying 'emergency' bunker surcharges in response to rising fuel costs.
'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,' Mr Keen added.
The retort came in response to AP Moller-Maersk's announcement that it is implementing a bunker adjustment factor (BAF) surcharge on January 1, one year before the International Maritime Organization's new rule comes into effect.
BIFA said this could lead to prices for a 40-foot container on the Asia-North Europe trade lane rising between US$480 and $840 - depending on fuel price - or by up to $683 on the Asia-US west coast trades, reported American Shipper.
'By any measure these are very major increases and they will be received negatively by BIFA members' customers,' said BIFA director general Robert Keen.
'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.
Mr Keen continued: '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.'
Earlier this year container shipping companies announced they would be levying 'emergency' bunker surcharges in response to rising fuel costs.
'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,' Mr Keen added.