New Bunker Surcharge
18 March 2019 -  Client Flyer 2019/04

New Bunker Surcharge

Dear Business Partners,

It’s well known that New Global Sulphur Cap, which was adopted by IMO – International Maritime Organisation, will come into force as of 1st of January, 2020.

It’s predicted that by the help of this new regulation, sulphur pollution all over the world would be significantly reduced, thus it would have a considerable effect on our environment. As Admiral Container Lines, it’s our priority to be a part of such a recovery plan of the environment based on that our priority is always protect the environment.

On the other hand, the cost of compliance with this new regulation is unbearable, therefore it’s expected that the cost of marine transport would be increased because of the technical revision on propulsion systems of existing container ships and production cost of new generation low sulphur type of fuel. Unfortunately, the price of new generation fuel still is not predictable by the existing bunker suppliers in maritime industry…

In order to be ready for new fuel recovery plan and allow our business partners to track and plan their transport costs, we are introducing NEW BUNKER SURCHARGE which will help our customers to calculate the bunker transport cost at any fuel price on a given trade lanes.
New surcharge will be applicable as of 1st of April and all existing surcharges related to bunker/fuel cost would be replaced by this new surcharge accordingly.

Bunker surcharge will be calculated based on the bunker consumed, miles steamed and import/export trade balance of each trade lane. Therefore, surcharge would be different for each trade lane. Please find below Trade lanes and applicable Bunker surcharge per TEU based on certain price level of supplied fuel on board:

Applicable Bunker Surcharge (usd /TEU)* IFO 380 cst price (Usd per metric tons) in Istanbul 350 400 450 500 550 600 650 700 750 Trade Lane Turkey to East Mediterranean 66 75 84 94 103 113 122 131 141 Turkey to Black Sea 39 45 51 56 62 68 73 79 84 East Mediterranean to Turkey 31 35 39 44 48 53 57 61 66 East Mediterranean to Black Sea 105 120 135 150 165 180 195 210 225 Black Sea to Turkey 39 45 51 56 62 68 73 79 84 Black Sea to East Mediterranean 105 120 135 150 165 180 195 210 225
*For refrigerated containers, above rates will be multiplied by 1.5 factor based on the extra electricity consumed for the cooling/heating system of this special container on board.

Please see below list of countries in related regions:

Regions & Countries
The new bunker surcharge method is a fair and simple method not only for the shipping lines but also for the cargo owners to plan their possible transport costs.
Bunker Surcharge will be charged as an addition item to the sea freight and it will not be considered as “All IN” item anymore.
Bunker Surcharge will be reviewed on quarterly (every 3 months) based on the fuel price (currently IFO 380CST; as of 1st of January 2020 new generation low sulphur type fuel or equivalent fuel type i.e. marine gas oil or others) in Istanbul and it would be updated only if the change in fuel price is more than usd 45/mtons. Otherwise it will remain same till next evaluation 3 months later.
Thanks in advance for your usual support and understanding.
Yours sincerely,

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