Emergency Bunker Surcharge (EBS) for all Seago Line trades

Published on 11 August 2018

Dear customer,

The increase in bunker prices in 2018 has been significantly higher than what had been expected and has now reached a level of 440 USD/ton in Europe which is the highest since 2014. The increase is more than 20% compared to the beginning of 2018 and this unexpected development means that it is no longer possible for us to recover bunker costs through the standard bunker adjustment factors.

Due to the unsustainable nature of the situation, Seago Line has decided to introduce an Emergency Bunker Surcharge (EBS) as a necessary action to ensure a continued sustainable service to our customers. EBS will be applicable to all DRY and REEFER cargo, effective as 1st of June 2018.

The surcharge tariffs are set to EUR/USD/GBP 25/50 for 20’/40’ containers for all Seago Line trades.
The currency of the surcharge follows the currency of the freight.

Tariff adjustment mechanism: The EBS tariff communicated above is based on a bunker price of USD 440 (IFO380 in Rotterdam). The EBS tariff is subject to change as per below trigger events:

  • Should the bunker price (IFO380 in Rotterdam) increase to a level of USD 530, EBS tariffs will be multiplied by a factor of 2.0.
  • Should the bunker price (IFO380 in Rotterdam) decrease to a level of USD 370, EBS tariffs will be zero.

For your reference, we have also included the levels and the rate structure for some sample corridors valid from today until further notice. These charges may be changed in the future and we will notify you accordingly.

Origins Destinations Commodity Rate Levels LSS EXP IMP/FRO
Antwerp Alexandria FAK EUR 275 EUR 450 EUR 25 EUR 50 EUR 210 EUR 210 USD 180 USD 250
Istanbul Rotterdam FAK EUR 250 EUR 325 EUR 25 EUR 50 USD 350 USD 350 EUR 245 EUR 245
  • The above rates are inclusive of the Basic Freight Rate (BAS), Standard Bunker Adjustment Factor (SBF) and Emergency Risk Surcharge (ERS).
  • The above rates are also subject to other applicable surcharges, including local charges and contingency charges.
  • The Peak Season Surcharge (PSS) for the indicated locations is currently USD 0.
  • These rates are unaffected by, and do not affect, any tariff notified, published or filed in accordance with local regulatory requirements.

We would like to take this opportunity to say thank you for doing business with us and apologies for the inconveniences that this may cause your business.

If you have any questions, please feel free to reach out to your local Sales or Customer Service representative. You will find contact details of our local offices on www.seagoline.com/offices.

Seago Line

Category: Rate Announcement