You would have seen recent news and announcements on an increase in shipping charges from various vessel carriers servicing Japan New Zealand route. This is due to the Covid impact since last year and the rebound in new vehicle production and sales, rebates on EV and PHEVs vehicles causing new car manufacturers to get priority on space putting greater pressure on available space for used vehicles.
With 20% of the total south pacific carrier fleet being scraped over the last 12 months all carriers are facing a tonnage/vessel shortage and in order to maintain the current services to New Zealand they do not have any other choice but to increase their rates including both GRI (general rate increase) and BAF (Bunker Adjustment Factor) or EBS (Emergency Bunker Surcharges). BAF/EBS track the costs of VLSFO fuel using the Tokyo Index and increase or decrease based on the quarterly metric ton average of VLSFO fuel. The last 3 months VSLO average is US$520/MT therefore the carriers have increased BAF from $40 to $80 per unit with effect from the next vessel due to depart Japan on 12 July 2021. In addition to this the GRI will be increased by NZ$100 per unit from your current rate and this will be invoiced to you accordingly.
Unfortunately the above is unavoidable in the current environment and this is the only way for the industry to combat competition for vessels and space to ensure a sustainable commitment on shipping our vehicles. IBC takes this position very seriously and always do our best to keep any increase at minimum possible. As you could see even with the increase we are still considered one of the market leaders with regards to overall OFS rates and services and we commit to continue to do so.
Thank you for your understanding and cooperation as always.