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International Shipping
Maersk Line announces United States and Canada Inland Fuel Surcharge
Date:2018-11-03 Readers:

Effective December 1, 2018, an Inland Fuel Surcharge (IFS/EFS) will be applicable to/from all U.S. and Canada inland location in the amount of $20 USD for every $0.10 USD incremental increase above the baseline fuel retail price of $3.20 USD per gallon.

This increase will be applied quarterly to all equipment sizes and types based on the fuel cost per gallon increases in the prior quarter.

The fuel retail price will be based on the average published by the third party U.S. Energy Information Administration (EIA). Maersk will conduct an inland fuel review on a quarterly basis no later than 30 days prior to the effective date.

When applicable, an Inland Fuel Surcharge will become effective the first day of each quarter: January 1st, April 1st, July 1st and October 1st. An Inland Fuel Surcharge will not be applicable should the fuel retail price average on the EIA website from the prior quarter be lower than $3.20 USD.

These changes are reflective of the ongoing challenges in the United States trucking market.

As a reminder of the key contributing factors to the current situation, we’ve provided an outline here of the top challenges and the current outlook:

  • A healthy U.S. economy has contributed to a nationwide shortage of drivers, with the current U.S. driver shortage of 51,000 expected to reach 100,000 in 2020
  • A December 18, 2017 U.S. federal mandate for implementation of ELD (Electronic Log Data) has impacted driver productivity
  • Decreased productivity has increased congestion at terminal and rail ramps, further limiting maximum productivity during drivers’ work hours
  • Increased street dwell has reduced chassis availability
  • Space constraints have led to U.S. rail ramps limiting free time allowances
  • An overall increased risk for demurrage, storage, and detention due to capacity shortages
https://www.ajot.com/news/maersk-line-announces-united-states-and-canada-inland-fuel-surcharge

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