MSC to implement more dynamic bunker fuel surcharges to tackle price volatility

Swiss container shipping firm Mediterranean Shipping Company (MSC) will calculate bunker fuel surcharges on a fortnightly instead of a monthly basis for all its Asian spot and monthly shipment contracts.

PHOTO: A Mediterranean Shipping Company container ship. MSC

“The current global political situation is creating major, and unpredictable, fluctuations on global fuel prices,” MSC says.

Its new bunker surcharge policy will be applicable from 15 April.

Similar arrangements were adopted by container lines when VLSFO and LSMGO prices spiked around the IMO 2020 transition to low sulphur fuels.

Bunker prices across major hubs surged to record highs last week, propellled higher by boycotts of Russian oil and already tight global supplies.

Prices have since made sharp losses and volatility remains rampant.