TSA carriers move to monthly surcharge adjustments

Staff -- Purchasing, 3/2/2006

Effective May 1, container shipping lines in the Transpacific Stabilization Agreement (TSA) will shift from quarterly to monthly adjusted fuel surcharges, in an effort to moderate cost impacts and make the surcharges more responsive to market conditions. 

The TSA says container carriers typically apply two surcharges, one for marine "bunker" fuel used aboard ship and the other for truck, rail and equipment diesel fuel used in connection with shoreside and inland operations.

"Fuel prices have been so volatile in recent months that the lag time between collection of fuel price data and quarterly surcharge adjustments has made it difficult for shippers to plan their costs and for carriers to recover theirs,” said Albert A. Pierce, TSA’s executive director. "Lines feel that a more timely calculation method in this kind of environment would be helpful to everyone."

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