Customer Advisory Rates Tariffs

Trans-Pacific Eastbound Market: Implementation of Updated Bunker Adjustment Factor Effective 1 July 2020

Bunker is one of the important cost components for a container shipping line. With the upcoming changes in network vessel deployment, we will be updating the quantums for Trans-Pacific Eastbound Bunker Adjustment Factor (BAF) to better reflect these changes and actual costs incurred.

Effective 1 July 2020, APL will implement an updated Bunker Adjustment Factor (BAF) – also known as Bunker Surcharge (BSC) – for long-term contracts of more than 3 months' validity.

BAF quantum
Based on the average tonnage of fuel consumed on the Trans-Pacific Trade and fuel price fluctuation, the following extracts of BAF quantum will be applied.

Origin: Asia, Australia, East Africa, Middle East, New Zealand, Papua New Guinea, West Asia
Destination: Canada, USA (except Puerto Rico and Virgin Islands), Hawaii
Discharge via: West Coast ports, Alaska ports, Hawaii, Vancouver, B.C. and Prince Rupert, B.C.

TPWC Eastbound

Origin: Asia, Australia, East Africa, Middle East, New Zealand, Papua New Guinea, West Asia
Destination: Canada, USA (Except Hawaii, Puerto Rico and Virgin Islands)
Discharge via: Atlantic-Gulf Coast ports and Halifax, N.S.

TPEC Eastbound

Kindly note that the BAF quantum for reefer cargo will be 20% higher than that of dry cargo for the same container size, with a minimum of USD25/TEU.

You will also find, as below, all the key elements of this BAF:

Methodology
Quarterly revision, based on VLSFO 0.5% bunker average price, depending on contract duration.

Implementation
Effective 1 July 2020, this updated quarterly BAF will be applied to all contracts of more than 3 months' validity

Tiers of USD25
Tiers of USD25 have been set up in order to avoid BAF revision in case of limited variation of fuel price.
Applicable BAF will be the corresponding value in the relevant tier.

Bunker reference
APL is using a single VLSFO 0.5% reference for all trades, with the following weight of each port worldwide: 40% Rotterdam VLSFO 0.5%; 50% Singapore VLSFO 0.5%; 10% Houston VLSFO 0.5%.

Please contact your local APL representative if you need any assistance.

We thank you for your business and continued support.