Carriers have begun implementing an EBS (Emergency Bunker Surcharge) as a result of rising fuel (bunker) prices that have spiked 19% since April 2018.
The price of fuel is tied to the price of oil, set by Brent Crude Oil. The Brent Crude Oil price has been going up since OPEC (Organization of Petroleum Exporting Countries) began reducing their oil supply in the beginning of 2017. Carriers were not anticipating early 2018’s surge in oil prices, and are now forced to implement an EBS to recover bunker costs.
It is up to the individual carrier to decide how long an EBS will be in effect for on any given trade lane, but oil prices are expected to keep rising through 2018 as a result of continued oil cuts and the U.S.’s sanctions against Iran. Surcharges will vary depending on the carrier and trade lane.