Bunker Adjustment Factors should come down

Today's price of oil at WTI Cushing Spot price is around 43.00.

Here is part of a chart with the Historical Crude Oil Prices (adjusted for inflation)
1996 $20.46 $28.01
1997 $18.64 $24.95
1998 $11.91 $15.70
1999 $16.56 $21.30
2000 $27.39 $34.16
2001 $23.00 $27.92
2002 $22.81 $27.22
2003 $27.69 $32.34
2004 $37.66 $42.80
2005 $50.04 $54.99
2006 $58.30 $62.11
2007 $64.20 $66.40
2008 Partial $97.98 $98.66

So, although the 2008 total average will probably be around 80.00 (I am just guessing), today's price is around the 2003-2004 levels.

I realize none of the carriers want to give up ANY revenue - they need every penny they can get, but I also think it is wrong to say you have a surcharge based on the price of oil, but then don't hold it to that basis.

One group has decreased their bunker surcharge, but not as much as the price of oil has dropped. It wouldn't surprise me if the bunker surcharge is more than the ocean freight, considering the market these days.

The Canada Transpacific Stabilization Agreement’s 11 member shipping lines on Wednesday dropped bunker surcharges 10.9 percent beginning Feb. 1.
The new fuel recovery charges will be:
• $292 per TEU.
• $365 per FEU.
• $411 per 40-foot, high-cube container.
• $462 per 45-foot container.
• $8 weight/measure adjustment.
CTSA’s currency adjustment factor will be remain at 0 percent in February.
CTSA member lines are APL, COSCO Container Lines, Evergreen Line, Hanjin Shipping, Hapag-Lloyd, Hyundai Merchant Marine, “K” Line, NYK Line, OOCL, Yang Ming and Zim Integrated Shipping Services.

We should start seeing other carriers and/or agreements reducing their bunker surcharges, or BAF (bunker adjustment factor) very soon. Either that, or we should see pictures of their pricing staff with egg on their face.