May 31, 2018Market Advisory


TOC Logistics International Inc. offers the following ocean market announcement:

In light of significant fuel cost increases, the top ocean carriers of the world are announcing Emergency Bunker Surcharges.  This is in addition to any normal quarterly fluctuations.  TOC traditionally maintains ocean rates to be inclusive of standard Bunker Adjustment Factor (BAF), however this surcharge is an emergency surcharge implemented outside of normal contractual terms.

We do not yet know if these surcharges will be implemented in full, if they will be able to be mitigated, or waived entirely.  Much depends on the trajectory of the oil price over the next 3 weeks, but the carriers are very aggressive to recoup losses so it is safe to assume some level of Emergency Bunker will be implemented.

As of this message, primary TOC carriers have announced following:

CMA – July 1 2018 effective date.  $55/TEU (press release attached)
MSC – June 21 2018 effective date. $100/TEU (official notice attached)
Hapag – No official announcement however one is expected at similar levels in the coming days.

In accordance with FMC regulations, TOC is providing its customers with 30 days’ notice of implementation of an Emergency Bunker Surcharge of $100/TEU effective July 1, 2018, for all FCL shipments to or from United States and Mexico.

We will negotiate this charge with our carriers, and implementation will be a pass through cost of whatever the final amounts are.

The final Emergency Bunker Fee amount will be communicated to each client once mitigation conversations are completed and further reflected in the updated client Negotiated Rate Agreements (NRA’s) which will be provided prior to July 1, 2018.

We thank you for allowing TOC Logistics to serve you.


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