The ocean freight cost benchmarking and procurement support division of Drewry, Drewry Supply Chain Advisors, on Wednesday (8 January) announced the launch of a new range of fuel advisory and management services designed exclusively for shippers and forwarders.
The new services extend Drewry’s advisory capability at a time when fuel is becoming an increasingly important part of transport costs and increasingly subject to regulations.
“Following implementation of the IMO 2020 low-sulphur rule change we have already seen extreme variations in fuel charges between carriers on the same tradelane, for similar ship sizes – even shared vessels,” said Drewry Head of Supply Chain Advisors Philip Damas
“On the Asia-to-US East Coast route, for example, across a sample of five carriers, we saw some had increased their BAFs by as much as 40% in 1Q 2020, whereas others by just 15%.”
Drewry has been working closely with shippers and industry representative organisations such as the European Shipper’s Council (ESC) in recent months on a number of initiatives aimed at improving fuel cost transparency and contractual practices.
Shippers can reduce their exposure to excessive BAFs and have greater control over and understanding of the fuel portion of ocean freight rates.
“We anticipate confusion over the new charges introduced by carriers will continue for some months yet as the market fully adapts to the new fuel standard,” he added.
“By helping review their existing processes and implement a standard BAF mechanism, covering measurement and adjustment periods, fuel prices and index formulae, we believe shippers and forwarders can gain both clarity and more control over fuel prices – essential pre-requisites to achieving more competitive and successful outcomes from their carrier negotiations.”
Drewry continues to monitor and report developments closely via Drewry’s Benchmarking Club, which gives exporters and importers exclusive access to average contract bunker charges by tradelane and Drewy’s new low-sulphur reference bunker index tracker (NB you must register and login to access this page).
Published: 9 January, 2020
‘We are thankful to the authorities of the Port of Fujairah and our partners for their continued trust in us.’
TSP results range from 0.16%m/m to 0.43%m/m with some attritional results showing clear instability and others less clear on the nature of the sediments present, it said.
Qingdao PetroChina Storage Company Limited to operate at Dongjiakou Port Area in Qingdao.
Complimentary event will be held at the PARKROYAL on Pickering Hotel at 31 August, 2018.
April bunker sales results released on Wednesday caught several players, who expected volume to fall due to lower international trade and COVID-19, by surprise.
5,000 kWh energy storage system will enable ships to operate with zero emissions while in port- meeting RINA Green Plus class notation.
The Bunkerchain Pte Ltd and Helmsman LLC sponsored event will be moderated by Gabian Chew, Senior Editor of Singapore bunkering publication Manifold Times.
No quarantine required if vessels have not called at Brazil, India, Nepal, Pakistan, the Philippines and South Africa during the 21 days prior to arrival at Hong Kong port, according to Marine Department notice.
CCIC discuss the progression of MFM technology for bunkering at Singapore port with Manifold Times; and possible development of a primary facility for MFM calibration.
‘The acquisition of PGI Industries will enhance VPS’ preventative maintenance services offered to the power sector, increasing protection and sustainability of the asset,’ says Malcolm Cooper, CEO, VPS.
A foreign vessel was involved in an alleged unauthorised STS incident with bunker tanker Pearl Melody on 5 June, Director and General Manager of Consort Bunkers tells Manifold Times.
There are few critical questions needed to be answered by the industry, finds authors of the Nanyang Technological University funded study Bio-LNG – Its Role in Shipping Decarbonisation.
14 Jun 2021
