Asian feeder operators raise IMO 2020 bunker surcharge

Increases of around 20% implemented with immediate effect due to higher fuel costs

Members of the Asian Feeder Discussion Group (AFDG) have increased the bunker adjustment factor (BAF) in the wake of the introduction of IMO 2020.

The changes, which take immediate effect, see a roughly 20% increase across the board per teu on shipments out of Singapore to regional ports.

The AFDG said the increased surcharges are based on the average MGO prices for the month of December and will remain in place until 14 February.

Services affected are those that run between Singapore and Indonesia, India, Thailand, Philippines, Cambodia, Vietnam, Malaysia, Bangladesh and Pakistan.

The BAF applicable on cargo to Jakarta, Belawan, Semarang, Palembang, Surabuya, Cambodia, Malaysia, Songkhla and Ho Chi Minh will increase from $21 per teu to $25 per teu.

For containers heading to Bangkok, the Philippines and Danang or Quinhon the BAF increases from $40 to $48 per teu and from $75 to $90 per teu for shipments to Chittagong, West Asia and Haiphong.

Participating feeder operators comprise: Advance Container Lines, Bengal Tiger Line (BLT), Megastar Shipping, New Econ Line, Orient Express Line, Orient Shipping Services, PACC Container Line, Pacific Eagle Lines, QC Container Line, RCL Feeder, Samudera Shipping Line, Sea Consortium and Simatech Shipping.

Members of the agreement said they had adopted voluntarily policy guidelines and have reached a non-binding consensus to apply the bunker adjustment factor.

In a note to customers late last year, BLT said it was essential that this recovery is fully implemented as the cost exposure is “untenable for all operators.”