Tech News, Magazine & Review WordPress Theme 2017
  • Home
  • Supply Chain Updates
  • Global News
  • Contact Us
  • Home
  • Supply Chain Updates
  • Global News
  • Contact Us
No Result
View All Result
No Result
View All Result
Home Supply Chain Updates

Shippers: Liner Low-Sulfur Surcharges Are Not Ethical Or Transparent

usscmc by usscmc
December 23, 2019
Shippers: Liner Low-Sulfur Surcharges Are Not Ethical Or Transparent
Share on FacebookShare on Twitter

Shippers are furious that low-sulfur IMO 2020 fuel surcharges introduced by lines vary so widely, even between carriers offering the same service within an alliance.

Container lines are acting with “opacity,” using “hidden formulas and no data backup” to calculate surcharges which they are using as an “opportunity to recover from low freight rates,” according to Jordi Espín, maritime policy manager at the European Shippers’ Council.

The surcharges have been introduced as carriers seek to recoup from customers the estimated $11 billion bill in higher fuel costs due next year because of the introduction of low-sulfur fuels that become mandatory under International Maritime Organization rules Jan. 1 (IMO 2020).

However, shippers and forwarders have consistently stated their bewilderment with the manner in which the fees have been levied.

High Price Fits All, Claim Shippers

Espin argues that IMO 2020 surcharges should trigger different, transparent charges for each customer based on the tailor-made services each receives.

“What it is not acceptable is that, once more, customers have to adapt to shipping lines’ requirements,” he told FrieghtWaves.

“Customers receive a warning notice about newer and higher costs but that doesn’t explain why the same service from the same alliance delivers different charges.

“There is no explanation why the shipping industry is behaving like this and why this new opportunity to build trust is again lost.

“This behavior may be legal, but it is not ethical and does not comply with a healthy code of conduct where partners with shared objectives and goals play on a common playing field.”

Espin was reacting to a survey by Alphaliner which found thatlow-sulfur surcharges (LSS) on the Far East to North Europe route applied by lines Dec. 1 ranged from $71 per twenty-foot equivalent unit (TEU) to $135 per TEU.

The analyst claimed carriers were failing to provide details of how the individual surcharges were calculated. Alphaliner also failed to find any correlation between the relative efficiency of the various carriers based on the average size of vessels deployed and the surcharge applied by carriers.

“The wide variations in the new fuel surcharge and lack of complete transparency on their calculations is bound to fuel shipper concerns of overcharging by carriers to compensate for lower freight rates,” Alphaliner correctly predicted.

Alphaliner: Liner Charges Lack Consistency

Illustrating its point, Alphaliner said Ocean Network Express (ONE) was applying a surcharge of $92 per TEU – a figure lower than nine out of the 10 carriers on the Far East-North Europe trade, even though the company currently deploys the smallest ships on this route.

Even within the same alliances that operate similar size ships, the analyst said there were significant variations in the charges applied.

“For example, MSC (Mediterranean Shipping Company) applies a Global Fuel Surcharge of $71 per TEU while [2M Alliance partner] Maersk’s Environmental Fuel Fee is 63% higher at $116 per TEU,” said Alphaliner.

“Maersk’s surcharge is also higher than HMM’s Environmental Compliance Charge (ECC) of $112 per TEU, even though HMM does not currently operate any of its own ships on the trade.”
Source: Freight Waves

usscmc

usscmc

No Result
View All Result

Recent Posts

  • Volkswagen Announces Pricing of 25% Equity Stake Sale in Porsche
  • Can software simplify the supply chain? Ryan Petersen thinks so
  • A strategic approach to cost reduction for banks and fintechs
  • Study examines supply chain issues and opportunities
  • Instacart acquires hyper local grocery e-commerce platform

Recent Comments

  • Top 5 Supply Chain Certifications that are in high demand | Top 5 Certifications on Top 5 Globally Recognized Supply Chain Certifications
  • 3 Best Procurement Certifications that are most valuable | Procurement Newz on Top 5 Globally Recognized Supply Chain Certifications

Archives

  • September 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • September 2019

Categories

  • Global News
  • Supply Chain Updates

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

slot gacor slot slot gacor 2023 slot 2023 slot gacor terbaru slot gacor terpercaya slot gacor slot gacor slot slot gacor 2023 slot 2023 slot gacor terbaru slot gacor terpercaya slot gacor slot gacor slot slot gacor 2023 slot 2023 slot gacor terbaru slot gacor terpercaya slot gacor

Pages

  • Home
  • Terms of Use
  • Privacy Policy
  • Disclaimer
  • Antispam
  • Contact Us

Categories

  • Global News
  • Supply Chain Updates
slot gacor slot slot gacor 2023 slot 2023 slot gacor terbaru slot gacor terpercaya slot gacor slot gacor slot slot gacor 2023 slot 2023 slot gacor terbaru slot gacor terpercaya slot gacor slot gacor slot slot gacor 2023 slot 2023 slot gacor terbaru slot gacor terpercaya slot gacor

Tags

APICS Globally Recognized Supply Chain Certifications IIPMR Certifications International Institute for Procurement and Market Research (IIPMR) ISM Next Level Purchasing Top 5 Supply Chain Certifications top supply chain certifications

Trending

No Content Available
  • Antispam
  • Contact Us
  • Disclaimer
  • Home
  • Privacy Policy
  • Terms of Use

© 2023 www.usscmc.com

No Result
View All Result
  • Home
  • Supply Chain Updates
  • Global News
  • Contact Us

© 2023 www.usscmc.com

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

SAVE & ACCEPT