Container Lines Seek Fuel Relief

Published online: Apr 19, 2000
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Transpacific shipping lines are responding to an 80- percent increase in marine fuel and diesel oil over the past year by adjusting surcharges built into current tariff rates and service contracts with freight shippers. Another increase is expected May 1

Studies by the Westbound Transpacific Stabilization Agreement show that fuel costs have increased to more than $24,000 per ship per day.

Fuel price increases since April 1999 alone have cost container carriers an estimated $500 million, including not only higher prices for vessel fuel but also for diesel oil used in terminal equipment and increased trucking charges.

As a result, WTSA carriers will pass on an $80 (40-foot container), $64 (20-foot container) and $4 per revenue-ton interim fuel-assessment fees effective May 1.

WTSA is a voluntary discussion and research forum of 12 major container shipping lines serving the trade from ports and inland points in the U.S. to destinations throughout Asia.