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Emergency Bunker Surcharge (EBS): What You Need to Know

Learn more about why fuel prices are increasing, and how long you can expect an EBS to be in effect.

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Carriers have begun implementing an EBS (Emergency Bunker Surcharge) as a result of rising fuel (bunker) prices that have spiked 19% since April 2018.

Why are fuel prices increasing?

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.

How long will an EBS be in effect?

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.

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