Maersk introduces its fossil fuel fee surcharge structure

by Inside Logistics Online Staff

Maersk has announced the introduction of its fossil fuel fee (FFF), making the change to help simplify its customers’ logistical moves by streamlining the costs of the different mandated fuel types into a single surcharge.

Currently, there are two types of surcharges connected to fuel for cargo on Ocean: the bunker adjustment factor (BAF) and low sulphur surcharge (LSS). These surcharges relate to the type of fuel that is in use and are in line with regulations related to the individual type of fuel.

The FFF surcharge calculation methodology will replace, in a phased manner, the BAF and LSS.

Maersk’s goal is to bring ease and connectivity to its customers’ logistics, saying the simplification to one surcharge related to fuel on ocean will offer multiple benefits.

The FFF tariff will be effective from July 1, 2024, when all new contractual quotes over three months’ validity will be quoted with FFF.

Pre-existing contracts with BAF and LSS will continue as-is until the time of renewal. After this, they will transition to FFF. Maersk will continue to publish BAF and LSS tariff rates to avoid any unexpected impact to these pre-existing contracts.

The FFF will be reviewed and updated quarterly, using scalable methodology, and is intended to simplify the invoicing structure.