-
Inland rate structure change aims to give Maersk customers more visibility and clarity on how they are being billed, saying it’s not a new surcharge
-
Structure of US$650 inland rates split into a fixed $500 inland haulage valid for the contract period and a $150 inland fuel adjustment factor to be reviewed quarterly
-
The new rate structure covers contracts with all Maersk, SeaLand and Hamburg Sud customers
A.P. Moller-Maersk revised its inland rate structure for ocean transportation contracts effective October 14, 2022, saying the change gives customers more visibility and clarifies how they are billed, and stressing it is not a new surcharge.
Maersk said in a press release that it has changed the presentation of its inland haulage charge of US$650 to a combination of a $500 “inland haulage” (charge 1) and a $150 “inland fuel” (charge 2) charge that represents a 30% fuel adjustment factor (FAF).
The new structure revision applies to all shipping contracts signed with customers of Maersk and its subsidiaries Sealand and Hamburg Sud starting October 14, 2022.
Contracts signed before October 14 will not be affected, as they have a fixed inland rate charge that includes fuel cost throughout the contract’s validity.
The inland haulage will vary on a per-country basis depending, among other things, on the euro exchange rate against the US dollar and the cost of fuel in each country, the container shipping giant said. It added that the FAF will be reviewed every quarter.
Maersk said the new structure is a “transitioning” from the “inland rates” item with fuel-inclusive price model into a combination of inland haulage charge and inland fuel charge.
“We believe doing this will give our customers more clarity and visibility on how they are being billed. The inland haulage charge component is fixed throughout the contract’s validity, and the inland fuel charge component will be adjusted quarterly, based on reviews of inland fuel indexes variations,” the company said.
Maersk said the change in the FAF structure had been prompted by recent global developments that have hit the logistics industry in many ways. These include port congestion in the US and Europe, supply chain disruptions relating to the COVID pandemic and the Ukraine conflict.
“For inland transportation services, the global [developments] increased inflation, major fluctuations of currencies and the disruption of crude oil supply chain have directly contributed to the rise of fuel price volatility,” the company said.
Maersk did not mention the war in Ukraine that began on February 24 this year when Russia invaded the former Soviet republic.
A ban on importation of Russian fuel and other economic sanctions imposed by the United States, Europe and their allies on Russia in subsequent weeks triggered a spike in fuel prices that drove up inflation across the globe to historic levels and pushing the global economy nearer into recession.
“While we aim to have the new fuel adjustment factor model in place globally, there are a few locations where the current inland rate structure will remain valid until further notice,” Maersk said, advising its customers to read the quote feedback document from their sales representatives.
All of the elements of fuel charge review (calculation method, charge review calendar and the compilation of fuel indexes adopted) are published on Maersk.com.
