The price of bunkers or fuel for operating the Borkum has seen a dramatic increase in the last 6 months.
The Borkum uses LSMGO (Low Sulphur Marine Gas Oil) as bunkers/fuel, and the tonne rate for LSMGO has increased significantly over the last 6 voyages to the islands.
In discussions with our Bunker Suppliers, the price is forecasted to rise further in the coming months.
ASC Liner Services is no longer able to absorb these cost and has no choice but to introduce a BAF from voyage BK2106 onwards of $115 per 20′ container and $20 per Rt for break bulk cargo.
This surcharge will be levied against every container (or break bulk item), shipped either to or from both Cocos Keeling and Christmas Islands.
Reviews will be done at the completion of each voyage and a new BAF will be calculated (based on prevailing Bunker rates), for implementation on the next voyage. The BAF will be shown separately on invoices and incorporated into final costs to ship goods to the islands.
This is not a rate increase, but an accepted system to protect shipping lines from tremendous rate rises in bunker costs.
