New Bunker Adjustment Factor formula
Bunker prices have tripled within the last three years and bunker costs now constitute nearly half of the total vessel costs, up from 20% around 10 years ago.
By TNN |
Maersk Line said in a statement in Mumbai that it has introduced a new formula for floating BAF (Bunker Adjustment Factor). “Our aim with the new formula is to provide a simple, fair, and transparent BAF for customers. In addition, allowing us to share and recover the extraordinary costs provided by the increasing bunker prices,” it said.
Bunker prices have tripled within the last three years and bunker costs now constitute nearly half of the total vessel costs, up from 20% around 10 years ago. Vincent Clerc, vice president for Pacific Services, said, they only recover around 50% of bunker expenses via BAF surcharges. “Naturally, this poses a significant exposure to Maersk Line, and traditionally we have tried to recover this via rate increases,” he adds.
The new BAF formula was built on principles that are common in other transportation industries like airlines and parcel services.
It builds on elements such as fuel consumption, transit time, and imbalances of container flows. However, only changes in the oil price will entail changes in the BAF level.
Bunker prices have tripled within the last three years and bunker costs now constitute nearly half of the total vessel costs, up from 20% around 10 years ago. Vincent Clerc, vice president for Pacific Services, said, they only recover around 50% of bunker expenses via BAF surcharges. “Naturally, this poses a significant exposure to Maersk Line, and traditionally we have tried to recover this via rate increases,” he adds.
The new BAF formula was built on principles that are common in other transportation industries like airlines and parcel services.
It builds on elements such as fuel consumption, transit time, and imbalances of container flows. However, only changes in the oil price will entail changes in the BAF level.
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