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Indiaexportnews.com

MSC bundles surcharges into rate

  24.05.2013    

Geneva's Mediterranean Shipping Co (MSC) will bundle its surcharges into freight rates on the Asia-Europe and Mediterranean trades in June, according to the Shipping Gazette.
"Surcharge levels published for the month of May have been rolled into the ocean freight," said an MSC statement on its website.
Thus, from June 1 the bunker utilisation contribution, the piracy surcharge and Suez Canal surcharge for cargo from Asia to north Europe, Scandinavia, the Baltic, western Mediterranean, Adriatic, eastern Mediterranean, North Africa and the Black Sea will be included in the overall rate.
The Dutch shippers' council (EVO) criticised MSC's move: "A shipper and consignee need to know what part of the total freight rate is related to deep-sea transport itself, what part to terminal handling and what part to hinterland transport," said an EVO statement.
"The major variable component of the freight rate, bunker costs, needs to remain transparent and retraceable and, accordingly, separately mentioned on the invoice. Some shippers prefer further specification of their rates, but most are satisfied if this basic division is respected in invoices," said EVO.
MSC's bunker surcharge is US$940 per TEU, its piracy surcharge at $55 and its Suez Canal surcharge at $20.
Recently, SeaIntel Maritime Analysis said the average bunker charge on the Asia-Europe trade was higher than the all-in spot rate published by the Shanghai Containerised Freight Index.
Paris-based analyst Alphaliner said: "Although most carriers continue to publish BAF tariffs, they have effectively ceased to apply BAF on the Asia-Europe trade following the precipitous fall in spot rates on the trade."


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