Ahead of the introduction of IMO 2020 low-sulphur regulatory standards next year, global shipping consultancy Drewry has begun providing members of its exclusive Benchmarking Club with exclusive quarterly benchmarks on contract Bunker Adjustment Factors (BAFs).
Cath Earl, Product Manager of Drewry Benchmarking Club commented, “This service enhancement is timed to help club members manage the transition to higher contract BAFs/fuel surcharges following the new low-sulphur rule change and overcomes the confusion that surrounds carrier BAF formulae.”
The current geographic scope of contract BAFs monitoring by Drewry is, 10 major East-West routes, 2 North-South routes (China-East Coast South America, China-Oceania) and 2 intra-Asia routes (China-South East Asia, North Asia-South East Asia). Benchmarks are based on more than 40,000 anonymised data points on contract BAFs paid by the more than 90+ multinational importers and exporters that participate in Drewry’s exclusive shipper/BCO-only, closed user group.
Launched in 2014, Drewry Benchmarking Club is a closed user group designed exclusively for shippers and is one of a number of ocean freight procurement support services from Drewry’s logistics consultancy arm, Drewry Supply Chain Advisors. These services give logistics and procurement teams within global manufacturers and retailers the visibility they need to secure the best possible ocean freight rate and contract terms or validate their procurement strategies.
Ahead of the IMO 2020 rule change, Drewry is now working on defining a standard fuel surcharge/BAF adjustment process acceptable to shippers.