At Sealand, your partnership remains of the utmost importance to us. We aim to give you overview and transparency in your logistics network, so you can streamline your end-to-end supply chain moves. As your integrated logistics partner, we work to ensure that your cargo moves with agility, connectivity, and ease, meeting the overall goal of ensuring the highest level of efficiency in your logistics operations.
Recent global developments have impacted the logistics industry in multiple ways. For Inland Transportation services, the global increased inflation, major fluctuations of currencies and the disruption of crude oil supply chain have directly contributed to the rise of fuel price volatility.
To give you more visibility and understanding of fluctuations of fuel costs, we have reviewed the rate structure of Inland Rates for Ocean transportation contracts. Therefore, as a feedback to the quote requests received from today's date, 14th October 2022, the Inland Rates will be presented as a combination of an ‘Inland Haulage’ charge 1 and ‘Inland Fuel’ charge 2 as per the below example:
Inland Haulage Export (IHE)
Inland Haulage Export (IHE)
Inland Fuel Adjustment Factor (FAF)
Inland Fuel Export (IFE)*
(*) Calculated based on FAF% applied over Inland Haulage Export (IHE)
The Inland Haulage charge1 remains fixed throughout the contract’s validity*, and the ‘Inland Fuel’ charge2 will be adjusted quarterly, based on reviews of Inland Fuel Indexes3 variations. While we aim to have the new Fuel Adjustment Factor model in place globally, there are a few locations where the current inland rate structure will remain valid until further notice. In order to identify Inland corridors on which the new model applies, please refer to the quote feedback document from your sales representative. The FAF model applies on all corridors where fuel charges export or import (IFE/IFI respectively) are indicated in the document.
Please note that FAF is not an additional surcharge but a change of inland rate structure, providing a more descriptive explanation of our Inland rates on your billing.
The above shall not apply to contracts that have commenced prior to the 14th October, unless otherwise agreed between the parties.
All of the elements of fuel charge review (calculation method, charge review calendar and the compilation of fuel indexes adopted) will be published on Maersk.com.
Should you need further clarification on the FAF model – or how it may impact you and your business with us – please reach out to your commercial partner or one of our customer service and commercial teams at Maersk, Sealand or Hamburg Sud.
We thank you for your trust and loyalty, and hope the introduction of the FAF helps you streamline and continue to expand your supply chain abilities. We look forward to continuing to assist you on all matters pertaining to your logistics needs.
*Special terms may apply for rates validity under multiyear agreements.
- Inland Haulage charges variation: Inland Haulage Export (IHE), Inland Haulage Import (IHI) and Inland Landside Haulage (ILH)
- Inland Fuel charges variation: Inland Fuel Export (IFE), Inland Fuel Import (IFI) and Inland Fuel (ILF)
- Fuel indexes are defined on a Country basis and applied based on inland service execution location.