In this article we will talk about a basic theme for all foreign trade professionals, who need to know better what the maritime modal can bring benefit to the transport of their cargo and even know more in depth how the whole process works for hiring a freight for vessels.
The main and most used modal in international logistics is maritime, which can be used for the transport of goods of various types of volume or dimensions.
However, there are also tax obligations that involve the transaction at the time of freight contracting, as is the case of the bunker, being one of the costs that most impact on final pricing.
We will take a “brief walk” on subjects that will follow our main theme, but that will also help in the ordering of thought. Check the reading to the end and know everything!
Sea freight: what is it and what are the types?
At this time we will conceptualize sea freight, because we have already said that because it is the most used because of its high transport capacity, it also has its important specifications.
There are two basic types of sea freight to carry out the movements in foreign trade, which are:
- fcl – when the container has its full capacity used;
- lcl – when the container comes with part of the capacity occupied.
These types of freight are carried out bycompanies with different objectives and their values are also different. All types of sea freight is composed of a basic rate, which varies according to the weight or volume of the cargo, always prevailing the one that has the highest profit for the shipowner.
Below, we will list some types of fees charged on sea freight, which are:
- bunker surchage which is the fuel surcharge;
- ad-valorem which is the percentage dropped on the FOB;
- heavy lift charge which is the rate for heavy volumes;
- extra lenght charge which is the rate for large volumes;
- congestion surcharge that occurs in the delay for the ship to dock;
- currency adjustment which is the currency adjustment factor;
- additional port that is charged for off-route cargo.
In conclusion, we still have three freight modalities that are necessary to carry out the quotation. They are:
- prepaid freight immediately after shipment;
- freight paid at the destination by the importer in the withdrawal of the goods;
- freight payable anywhere in the world with notification to the shipowner.
What are the points of attention in the contracting of sea freight?
Companies working in foreign trade need to give importance to some valuable details when hiring good sea freight, such as:
- the first negotiation to decide the type of payment of the freight;
- check the customs enclosure to avoid the demurrage of the goods;
- check the free time count of the load;
- check container conditions prior to port pick-up.
What is Bunker and what are the rates in the composition of sea freight?
The bunker is also known as BAF (Bunker Additional Fuel) is the fuel surcharge applied in percentage on the basic freight contracted, in order to cover fuel costs during the movement of the goods.
For the calculation of sea freight, one should consider the rates defined by the shipowner or the carrier, in addition to the costs that will be paid due to the handling and clearance of the cargo at the port.
Generally, the freight basic operation is presented in the quotations, prevailing the factor that involves the highest revenue for the shipowner, varying between weight or volume and other characteristics analyzed in the goods.
Factors contributing to the change in sea freight
The bunker as well as other fees and surcharges mentioned above, make up the pricing of sea freight. However, there are also some other factors that impact on changing these costs. They are:
- factors inherent in the goods;
- legal factors;
- commercial factors;
- geographical factors;
- political, social and economic factors.
Nevertheless, freight pricing can be influenced by variations in routes, ports frequented, ships used, types of goods to be transported, currency used in the commercial transaction, and the economic, administrative and commercial system of the countries of origin and destination.
Bunker with biodiesel for sustainable shipping
The feasibility of adding 7% of biodiesel to marine diesel oil is a positive expectation that will bring benefits to the environment.
With the objective of harnessing the Brazilian experience in the production of this biofuel, partnerships are established between multinationals and universities so that the tests are carried out, including directly on the vessels.
Experts claim that this strategy could offer a gain in scale for the shipping market, in addition to reducing the value of “cleaner” fuel, generating gains for foreign trade companies in the price of freight.
The federal government is studying the Fuel of the Future program that will serve to expand this alternative to further decarbonization of national sea freight.
How does bunker affect the sea freight market?
According to Petrobras data, the bunker ton is sold, on average, for US$ 1,200, causing a 100% adjustment since January 2022, because sea fuel prices are aligned with those of major ports around the world.
Thus, the costs for ships have been 45% in freight operations, being greatly impacted by the values of the price of Brent oil.
Accordingto ANTAQ, in Brazil 187 million TON of cargoes are moved abroad and 50 million Tons within the country, having an immediate effect in the negotiations, with fluctuations in prices, quoted in dollars and without following a policy of parity.
According to ABAC, fuel expenditures account for 60% of maritime operations, also reflecting too much in the sector. Faced with the bottleneck caused by the lockdown in China, global maritime logistics was impacted, causing a decrease in bunker demand with ships stalled.
But with the resumption of movements, exceeding expectations, the amount of fuel was not enough. Currently, the situation causes high fuel prices when the value at the pump exceeds what was negotiated in contract, having the contractor to pay for the surplus.
High in marine fuel in recent months
In view of all this, we realize that our maritime transport sector needs to assess the market loss that occurred after the end of the agreement with Argentina and Uruguay and thus bet more on increasing cargo transportation on routes between Brazil and other countries, with a greater entry of foreign companies in the domestic market, that moves more than 20% in the volume of orders.
We hope that the subject of the article made sense to you and that thus, the knowledge adds more value to the moment when you need to quote the price of sea freight.
