10 September 2024
Freight News

Maersk’s New ‘Fossil Fuel Fee’ More Costly for Shippers than Surcharges

Maersk’s new fossil fuel fee (FFF), which replaces its bunker adjustment factor (BAF) and low-sulphur (LSS) surcharges, appears to be a more costly outcome for shippers and to the carrier’s advantage.

On May 31, Maersk announced the FFF and since July 1, all new contracts with more than three months’ validity have been quoted including the new fee.

To calculate FFF, the Danish carrier uses Platts’ fuel price index for 0.5% sulphur fuel oil (VLSFO) and 0.1% sulphur fuel oil (LSMGO).

Using this methodology for the period of May 11 to August 10, Maersk updated the FFF to an average $586.59 per ton for VLSFO and $750.28 per ton for LSMGO from October 1.

Read more in an article from The Loadstar.

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