Emergency Bunker Surcharge
Most people in the ocean freight shipping industry are familiar with the term called Bunker Adjustment Factor, which is also called a bunker surcharge that shippers have to pay to cover the expenses of fuel. Usually this fee is included in your ocean cargo rate that you pay to the freight forwarder. However, there is another similar expense that a shipper might be slapped with sometimes. The emergency bunker surcharge, also called EBS, is an emergency expense that has to be paid to cover higher fuel prices than were originally anticipated. A traditional bunker surcharge is known ahead of time. The emergency bunker surcharge is usually a last-minute implementation and an inconvenience for shippers.
What exactly is the emergency bunker surcharge based on? There are numerous factors. The size of a container, 20 feet or 40 feet, is a price factor. Another factor is the type of container, like a high cube. The destination port for a container is another factor that determines the amount paid. An individual shipping line in a particular region can decide to include the addition of an emergency bunker surcharge. A national or international shipping organization can also decide to use an emergency bunker surcharge as well. The emergency bunker surcharge is usually paid for at the port, and it is the seller of the cargo who pays the fee. When facing an emergency bunker surcharge, we all know that his can be a financial hiccup, but it is sometimes a part of the shipping process.