Liner conferences overcharge on BAFs, says ESC commissioned research

EUROPEAN Shippers Council (ESC) research into bunker surcharges by liner conferences are creating "growing disquiet" because they are higher than fuel costs, says a statement from the lobby group.

ESC-commissioned Meyrick and Associates analysts say TACA's published bunker adjustment factor (BAF) of US$607 per TEU was $422 higher than fuel costs, while the FEFC surcharge of $456 per TEU was nearly $100 above the study's estimate of real costs.

According to ESC's chief executive Nicolette van der Jagt, the company had suspicions that shippers were overcharged on surcharges but were surprised at the results. The group will be consulting with the carriers to see how it arrives at BAFs much lower than the BAFs being charged.

"We need to be able to remove any doubt over fuel costs covered in individual agreements, in order that shippers and carriers can build a relationship between them based on trust - something that the conference system and mechanisms have previously failed to do," she added.