Tuesday, April 7, 2009

EU to scrutinize bunker adjustment factors

No sooner than I wrote these words in my post regarding the average price of bunker

I think it's a little hard to justify a bunker surcharge based on these figures

Lloyds List advised

Brussels to police liner sector's bunker adjustment factors

Watchdogs will “vigorously enforce the competition rules in order to prevent any attempt to compensate the fall in base rates by increasing BAFs and other surcharges and ancillary charges via anti-competitive practices”, the minutes show.

However, I think the guy at Nestle has a better idea of the problem

A prominent shipper last week called for greater transparency in the assessment of fuel levies and other surcharges.

Nestlé head of global ocean transport Brett Whitfield told an industry audience that many lines were unable to explain how their BAFs were calculated.

That reflected a wider problem among box lines of failing to understand their cost base, he claimed.

Carriers have been exempt from anti-trust regulations for so long, they don't know how it works in a competitive world.

Mr Whitfield also said carriers had not taken advantage of the opportunities available under the new legal environment, with “a lot of confusion” about how best to respond to customer requirements.

If international containership lines were smart, they would try to hire people from the airline industry, who have gone through the deregulation and pains of operating in a competitive environment.

Although, 30 years after deregulation of the airlines, they are still having lots of problems.

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