We have all seen the headlines about the rising global oil price and experienced the effect of raising fuel prices at the pump. The fuel price increases have led our vendors to levy additional inland charges, due to the increased cost of diesel (over 20%). In addition, the cost of Very Low Sulfur fuels oil (VLSO), which is used by shipping lines, has also increased sharply, $769 a ton on Feb 24th to $1001 a ton on Mar 8th (Source:Ship&Bunker)
Traditionally there has been time to react as fuel price increases usually took effect with a month’s notice or with a quarter’s notice but now carriers and shipping companies are now applying and adjusting their fuel surcharges with immediate effect. As a result of these changes, we will be raising our fuel surcharge to cover the cost of the VLSO changes. In addition, we will be adding 50c a case in Emergency charges, to cover the cost of inland fuel surcharges. Emergency charges will typically increase from ~$1 a case to ~$1.50 a case.
East Coast
The fuel surcharge will change from 14% to 17% for the East Coast.
West Coast
The fuel surcharge will change from 16% to 19% for the West Coast.
Emergency Surcharges include : Ocean Carrier Emergency Surcharges + Vendor emergency price increase, port congestion/equipment upcharges, and additional inland fuel surcharges (pickup and drayage)
The price increase will be effective April 1st, typically we prefer to give 30 days notice of LCL price changes, unfortunately, these price rises have been levied on us with immediate effect.
FCL’s are priced on a custom basis and will include similar changes at time of invoice
If you have any questions, please contact your sales rep, or email support@elentenyimports.com
