Maersk Asks Customers To Pay For $2 Billion Depression Sulphur Fuel Neb Through Novel ‘Bunker Adjustment Factor’

From Bloomberg via gCaptain:

The cost of delivering footing merchandise is almost to become up.

A.P. Moller-Maersk A/S, the world’s largest container transportation line, said Mon that customers using its giant box ships volition accept to pay separately for fuel from 2020, when prices are expected to surge because of tougher environmental standards. The regulations are designed to cutting downward emissions of sulfur, a pollutant blamed for human wellness weather condition such equally asthma.

To instruct customers ready for the fuel upgrade, the Copenhagen-based companionship volition from adjacent yr outset to pause out the fuel cost when charging its customers for delivering goods inward steel containers across thousands of miles of ocean. From 2020, customers volition thus hold out expected to encompass that bill.

The 2020 sulfur cap is a game changer for the transportation industry,” Vincent Clerc, main commercial officeholder at Copenhagen-based Maersk, said inward a statement. The novel bunker fuel surcharge model “is a simple, fair together with predictable machinery that ensures clarity for our customers inward planning their provide chains for this pregnant shift.”

Read: Maersk’s Letter to Customers Introducing New ‘Bunker Adjustment Factor’

Maersk, which controls almost a 5th of the container transportation market, has for years added surcharges to its container rates to brand upward for swings inward bunker fuel prices amongst varying degrees of success. It hasn’t ever succeeded inward moving all costs over to clients because of tearing contest together with overcapacity inward the transportation industry....MORE