Maersk: New Fossil Fuel Fee for Ocean Transport

In Denmark, Maersk announced starting July 1, a new Fossil Fuel Fee (FFF) will replace the current Bunker Adjustment Factor (BAF) and Low Sulphur Surcharge (LSS) for ocean transport contracts longer than three months. The FFF will streamline the cost recovery for various mandated fuel types into a single quarterly reviewed surcharge.

The FFF aims to reduce the complexity of current billing practices, which involve separate surcharges for 0.5% and 0.1% sulphur fuels. This change is part of an ongoing effort to decarbonize ocean transport by making logistical moves more transparent and sustainable.

Existing contracts will retain BAF and LSS until renewal, at which point they will transition to the FFF. This phased approach ensures no unexpected impacts on current agreements. The new FFF structure is designed to adjust seamlessly to any new regulatory fuel requirements, providing a scalable and predictable cost framework.

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