Hamburg Sud and Alianca to raise bunker surcharges

Hamburg Sud and Alianca are raising bunker surcharges on their east coast Americas trade routes by US$25 per TEU, starting from the beginning of August, according to the Shipping Gazette.

Company officials said the changes were necessary given the recent hike in bunker prices, now one of the largest cost factors in service delivery.

Julian Thomas, Alianca's Sao Paulo-based managing director, said in a statement that carriers have been caught in recent months between a market climate of deteriorating rates and rising costs for fuel. "We cannot continue to absorb these increases and maintain the service quality our customers demand."

Frank Larkin, senior vice president for Hamburg Sud Region North America, said intermodal service providers, including truck and rail, have also had to raise rates in light of these competing factors.

"Bunker increases are never a welcome event, but we hope customers will recognise the challenges we face given current market conditions, and that these changes are necessary to maintain the service quality and reliability they expect."

(Source: Transport Weekly)