On January 21, 2020 Maersk line announced on its website that the ocean carrier will be adjusting its Bunker Adjustment Factor (BAF) by $50 to $200 per FEU (Forty-foot Equivalent Unit) across all trade routes starting March 1, 2020.
Outer Seaways also received notifications that Hapag-Lloyd will be adjusting its BAF on certain export routes from China and Hong Kong starting March 2, 2020, which will be valid until March 31, 2020.
The adjustments are in response to the high volatility of low-sulfur fuel prices that have taken place over the last few weeks. These higher than anticipated fuel costs have led carriers like Maersk and Hapag-Lloyd to reevaluate their original calculations and apply increased charges.
The International Maritime Organization (IMO) 2020 mandate which took effect on January 1, 2020 ordered that all ocean carriers must transition to exclusively using low-sulfur bunker fuels.
Ocean carriers began implementing this transition and applying their marine fuel recovery surcharge plans between December 1, 2019 and January 1, 2020.
Until further notice, exporters and importers should plan to margin for these additional ocean freight expenses.
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