Maersk, Hapag-Lloyd, Japan’s Ocean Network slapping on fuel surcharge for road transport
Inland part of intermodal freight covers all transport over land using modes such as trucks, and is typically bundled with ocean freight
THREE of the top 10 shipping lines are implementing a fuel surcharge for their land transportation services amid rising fuel prices, driven by the effective blockage of a key passage near Iran as the country retaliates against attacks from the United States and Israel.
This is on top of an emergency fuel surcharge that was announced after crude oil prices rocketed on concerns of a supply shortage from the Middle East.
A check of these players’ websites showed that Danish integrated logistics company Maersk, German shipping line Hapag-Lloyd and Japanese container shipping firm Ocean Network Express (ONE) have already applied, or will be imposing, a surcharge for inland transport services.
Inland transportation covers all transport activities over land using modes such as trucks, and is typically bundled with ocean freight to move goods between seaports and inland locations including warehouses and distribution centres.
Maersk has implemented an intermodal fuel fee for Singapore with effect from Thursday (Mar 19). It announced this in an advisory on Wednesday; it also said it will impose such a fee on at least 10 other countries, though with different commencement dates and rates, as well as hike existing surcharges for two others.
For Singapore, the fuel fee is S$50 a trip if it is within Jurong, and S$65 if it is outside the area.
The company said: “This surcharge will be in place for as long as it is necessary to cover the increased costs that we are incurring... Given the volatility of the current energy market, further adjustments may be required as conditions evolve.”
Maersk’s chief executive officer, Vincent Clerc, earlier told media that the company is being forced to ship fuel from the US and Europe to Asia, as bunkers risk running dry.
Similarly, ONE will impose an emergency inland fuel premium for carrier haulage transport, which involves moving containers between ports and customer locations inland.
The surcharge will be calculated as a percentage of the haulage rate, ranging from 1 to 14 per cent, and is applicable across all trades.
In an advisory dated Mar 13, Hapag-Lloyd said it may introduce or update a separate inland fuel floater (diesel) for applicable inland services, as diesel prices are expected to become more volatile in the coming weeks.
The company had earlier notified shippers that an emergency fuel surcharge will be introduced across all trades.
Some carriers, meanwhile, are hiking their existing emergency fuel surcharges. Among them is CMA CGM, which is raising its fee by as much as 77.8 per cent higher than the previous level as at Mar 16.
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