Global shipping line Maersk Line has launched a new bunker adjustment factor (BAF) formula to better cope with fluctuating oil prices.
The new BAF will apply to Far East – Europe, Intra European, and Europe – Middle East and South Asia trades to be revised on a monthly basis.
“Our aim is to provide a simple, fair and transparent BAF for our customers, allowing us to share the risks and opportunities from the fluctuating bunker prices,” the company said.
“We will apply the formula on a revenue-neutral basis. This means that any reduction/increase in BAF will be offset by an equivalent increase/decrease in the base rate.”
The new BAFs for its Far East – Europe trade are USD 720 per 20-foot container for west-bound services and USD 240 for east-bound services. Intra Europe services adopt BAFs varying between USD 200 and 400, and Europe – Middle East and South Asia routes are subject to a BAF of USD 465.
The formula applies to both dry and refrigerated containers.
”With the BAF calculator, you can calculate your own port-to-port specific BAF and make simulations of upwards and downwards movements in bunker prices,” the company said.
Meanwhile, Maersk Line has announced its commercial cargo service to and from Iraq was reopened to cater for the rising demand for Middle East services.
“As of 1 September 2008, we have reopened the acceptance of commercial cargo to and from Iraq. This move is in response to the growing demand from our customers and the increased number of projects and volumes in and out of Iraq,” it said.
The company’s sub-contractor Inchcape Shipping Agency will be responsible for the Iraq service.
For more information on the Maersk Line BAF formula and calculator, visit www.maerskline.com/baf.