Shippers face fuel bill increases

By Yoke Har Lee

Hefty jumps in international oil prices have led to some shipping lines slapping a bunker fuel surcharge on customers.

Bunker fuel prices have risen nearly 100 per cent since February but have stabilised in the past few days, shipping industry officials say.

Whether the end consumer eventually absorbs these added costs depends on how far bunker prices continue to rise in the near future.

In the case of Columbus Line, the rise would lead to additional costs of $US50 to $US70 ($98-$137) a container, said its general manager, Greg Wilson.

Other carriers are contemplating introducing the surcharge, with minor variations in the amount.

Shipping lines have two components in their contracts with customers - the bunker adjustment factor and the currency adjustment factor - which give them the leeway to introduce the emergency surcharges should either move significantly.

Columbus Line's bunker adjustment factor is 3.2 per cent for New Zealand-North America, 5.5 per cent for New Zealand-South Pacific, and 6.07 per cent on North America/Caribbean-New Zealand trades.

Maersk New Zealand's national marketing and sales manager, Craig Sain, said the company was likely to introduce such a surcharge on trades moving northbound and southbound between New Zealand, Asia, the Middle East and the Indian subcontinent.

P&O Nedlloyd is still considering whether to introduce a surcharge, the company says.

Neither Cosco New Zealand nor Wallenius Wilhemsen Lines is intending to put up its rates out of New Zealand now, although out of the US Wilhemsen is adding a 6.07 per cent bunker charge.