Brussels, London, 30 June 2020 – European forwarders’ association joins industry initiative on a fair, neutral bunker adjustment factor indexing mechanism for shippers, forwarders and shipping lines.
CLECAT, which represents the interests of more than 19,000 companies in logistics, freight forwarding and customs services, has joined the initiative started last year by Drewry and the European Shippers’ Council to define fair principles and a clear indexing mechanism for Bunker Adjustment Factors in container shipping.
The mechanism was the result of the ESC-Drewry IMO toolkit reference group, a committee of Drewry procurement professionals and 10 ESC member shippers formed in 2019 and has been adopted by both Drewry shipper customers and ESC shipper members since its publication.
Together, CLECAT, Drewry and the ESC aim to promote the voluntary use of the indexing mechanism for fuel charges.
The three industry expert groups also plan to work on areas of cooperation, possibly covering further resources, transparency or easier standard contract practices for all stakeholders in the maritime and logistics sectors.
“This indexing mechanism will help improve transparency and fairness in how fuel costs are calculated which will benefit all stakeholders in the supply chain. We hope that this will facilitate discussions with carriers and a better understanding of BAF indexing methods", noted Nicolette van der Jagt, Director General of CLECAT.
“We welcome CLECAT to our initiative on fair BAF mechanisms and look forward to engaging in constructive discussions with expert representatives from both the forwarder and shipper sectors – our door is also open to shipping lines,” said Philip Damas, head of Drewry Supply Chain Advisors.
“Shippers and Freight Forwarders working together to foster transparency and shared views on how to asses fuel costs brings the level playing field to a new framework of cooperation where visibility and collaboration will expand throughout the whole maritime supply chain. Current times require stakeholders to move away from silo perspectives and promote inclusive views to better integrate the maritime transport flow,” said Jordi Espín, Policy Manager of ESC.