Wednesday, March 11, 2009

Basis for Bunker Adjustment Factor

One group, the Transpacific Stabilization Agreement (from the U.S. to Pacific Rim) has changed it's formula for charging the bunker adjustment factor

The calculation will be based on the average weekly fuel prices published by independent tracking service Bunkerworld for a smaller number of load ports – Hong Kong and Los Angeles for a West Coast sailing; and Hong Kong and New York for an East Coast sailing, said the TSA.

The formula will assume average vessel size, fuel consumption and steaming time for each routing, taking into account the effective capacity for each type of vessel.

I wonder what they will do if the bunker prices drop more. I doubt anyone will ever see a bunker adjustment credit - only a charge. If the bunker prices drop more, they will probably just reduce the charge to Zero.

At least they have taken the step to adjust this on a quarterly basis instead of monthly.

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