Container Conference Carriers Raising Fuel Charges

Published Sep 15, 2005 12:01 AM by The Maritime Executive

AP Moeller-Maersk, the world's largest container carrier and six other cargo lines have announced an increase in Fuel Surcharges in an effort to recover part of their costs.

Starting on October 16, the shipping lines plan to charge $423 for each twenty-foot container to and from the U.S. East Coast and Gulf Coast, an increase of 19 percent, the seven-member Trans-Atlantic Conference Agreement (TACA) said on Monday. It will raise fuel charges by 20 percent to $635 to ports along the U.S. West Coast.

Liner services have been severely impacted by higher fuel costs because of record oil prices. Ship bunkers rose to a record $303 a metric ton in Rotterdam on September 2nd, more than doubling this year. Approximately 80 percent of global trade is carried by sea. 'Based upon the latest bunker monitoring, which has seen the price of fuel hit a record high, an adjustment of TACA's' levies has been triggered, the group said. They expect the increased fuel charges to last through mid-November.

Furthermore, higher costs from fuel prices and port fees in the U.S. are hurting profits at shipping lines such as AP Moeller' Maersk Sealand and Hapag-Lloyd Container Line GmbH, a unit of TUI AG. The price of so-called 380 Centistoke Bunker Fuel at the port of Rotterdam was $269 a metric ton on Monday. The group will boost fuel charges for 40-foot containers to $846 from $708 for East Coast and Gulf Coast ports and to $1,270 from $1,062 to and from the West Coast.

Atlantic Container Line AB, Nippon Yusen Kaisha Line, Orient Overseas Container Line Ltd, Royal P&O Nedlloyd NV and Mediterranean Shipping Co are also members of TACA.