Bunker Surcharge

News – May 29 2017

29.05.2017 - Bunker surcharge in ports of Finland and Estonia

We will adjust our bunker surcharge in Finland to 2.12%, which will take effect in our invoicing from June 12, 2017. The present surcharge in Finland is 4.89%

Due to fuel regulations in Estonia, which require usage of full-tax low sulfur MGO for domestic operations starting from the beginning of 2015, current fuel price level in Estonia is 1102 USD/t (859 €/cbm). Therefore, harbor towage operations in Estonian ports are subject to extra 10% BAF in addition to the above-mentioned BAF level starting from 1.04.2015, which only partially compensates actual fuel price increase. The bunker surcharge for Estonian ports will be 2.12% + 10% = 12.12% starting from June 12, 2017. The present surcharge in Estonia is 14.89%

Our bunker clause operates on the principle that it partly (1/3) shares the fluctuations in bunker costs with our customers. Practical changes in surcharges are applied only in time intervals exceeding 1 month to maintain stability in pricing.

The BAF is based on the fuel price 385.40 €/m3 (1.7.2009). The observation period of changes in bunker price is four weeks. If the bunker costs change by an average of 6% or more in comparison with the basic price during the observation period, then 1/3 of the change will be charged as a bunker surcharge. The surcharge will take affect after 14 days notification.

The notification can be viewed at www.alfonshakans.com or if required, the bunker surcharge changes will be notified by email upon request.