TSA to begin calculating fuel surcharges monthly
Container shipping lines in the Transpacific Stabilization Agreement said Thursday that as of May 1, member lines will calculate and adjust bunker and inland fuel surcharges monthly instead of quarterly in an effort to moderate cost impacts and make the surcharges more responsive to market conditions.
Fuel surcharges, added on to base freight rates, are designed to float with prices for marine fuel and help recover sudden and sustained cost increases in a volatile market, TSA said in a statement. Carriers typically apply two surcharges, one for marine bunker fuel used aboard ship and the other for truck, rail and equipment diesel fuel used in connection with shoreside and inland operations.
'Fuel prices have been so volatile in recent months that the lag time between collection of fuel price data and quarterly surcharge adjustments has made it difficult for shippers to plan their costs and for carriers to recover theirs,' said TSA Executive Director Albert A. Pierce. 'Lines feel that a more timely calculation method in this kind of environment would be helpful to everyone.'
TSA is a voluntary discussion and research forum of 11 major container shipping lines serving the trade from Asia to ports and inland points in the U.S.
TSA to begin calculating fuel surcharges monthly
