ONE slaps Bunker cost Recovery Surcharge

Monday, 11 June 2018 00:00 - - {{hitsCtrl.values.hits}}

ONE has encountered progressive and significant inflation of fuel costs over recent months.

Bunker fuel prices have increased by more than 25% during 2018 and could escalate still further.

“This sustained surge in fuel costs has greatly impacted our cost base. The escalating cost situation has now reached the point at which we are forced to respond by adjusting our approach to bunker related pricing components,” ONE said.

In order to adjust to these changed circumstances, ONE will implement a Bunker cost Recovery Surcharge (BRS) charge on a widespread basis (except for export cargo originating from mainland China) from July onwards; ranging $ 50 per TEU for DRY and $ 90 per TEU for Reefer. The BRS quantum will vary by Trade Lane and will be derived via a logical and equitable calculation mechanism. In the meantime, The BRS will not be applied if a customer has a mutually agreed floating BAF mechanism in place as a part of their contract construction. ONE said it continues to explore all avenues to mitigate fuel consumption and costs for the benefit of the environment and supply chain costs of customers.