Cross - channel surcharges
The price of fuel oil has continued to increase during 2007 and despite the present high cost there are no signs of immediate stabilisation.
Despite these extortionate increased costs Norfolkline have in the past managed to avoid implementing a surcharge to our freight customers on the Cross Channel route. Unfortunately we are now in a position where we can no longer sustain this situation, and continue to absorb these costs, without implementing a bunker adjustment factor (BAF), for all vehicles shipping with Norfolkline on our Dover / Dunkerque service.
For freight clients, the BAF will not be implemented until 15th February 2008 and it will be based on fuel oil prices and exchange rates applicable in January 2008.
The BAF calculation will be based on the price of low sulphur fuel oil (LS380) in Rotterdam, together with the appropriate exchange rate (USD/Euro).
The calculation will be fully transparent and will fluctuate monthly, based on the average cost of fuel during the previous month. It is impossible to predict the BAF levels as they are fully dependant on the fuel costs and the fluctuating exchange rates. However, as an indicator based on the December 2007 prices and exchange rates we would be looking at a figure of approximately €5.
The attached table explains the formula used for our calculations, it is also important to note that the BAF will cease to apply if and when the average price of LS380 reaches USD200/ton in any calendar month.
In order to demonstrate full and complete transparency the low sulphur fuel oil prices (LS380) in Rotterdam can be tracked on the following website:
Additionally the USD/Euro exchange rates can be tracked on:
The prices and exchange rates will be constantly tracked by Norfolkline using the above two sites and the relevant surcharge will be presented here.
As an example of how fuel price influences the surcharge per shipment see the table below:
| Average LS380 price in Rotterdam ($/ton) |
Surcharge (€/shipment) |
Surcharge (£/shipment) |
| 440 |
2.9 |
2.2 |
| 450 |
3.4 |
2.5 |
| 460 |
3.8 |
2.8 |
| 470 |
4.2 |
3.1 |
| 480 |
4.6 |
3.5 |
| 490 |
4.6 |
3.5 |
| 500 |
5.0 |
3.8 |
| 510 |
5.5 |
4.1 |
| 520 |
6.3 |
4.5 |
| 530 |
6.7 |
5.0 |
| 540 |
7.1 |
5.4 |
| 550 |
7.6 |
5.7 |
The calculation method in the table above is based on exchange rates of $/€ 1.47 and €/£ of 0.75 and the the highlighted area represents the BAF level if it was calculated against the LS380 prices of December 2007.
March BAF Calculation
April BAF Calculation
May BAF Calculation
June BAF Calculation
July BAF Calculation
August BAF calculation
September BAF Caluclation
October BAF Calculation
November BAF Calculation
December BAF Calculation
January BAF Calculation