Calculation Basis and Reference Prices
Maersk's Fossil Fuel Fee is calculated based on the Platts fuel price index, specifically using the average prices of two fuel types: Very Low Sulfur Fuel Oil (VLSFO) with 0.5% sulfur content and Low Sulfur Marine Gas Oil (LSMGO) with 0.1% sulfur content.
The reference period for the fourth quarter Fossil Fuel Fee calculation is from 11 May 2026 to 10 August 2026. During this period, the average price of VLSFO was USD 752.19 per tonne, and the average price of LSMGO was USD 1,157.90 per tonne.
Compared with the third quarter, the reference prices of both fuels have declined. In the third quarter, the average price of VLSFO was USD 774.65 per tonne, and the average price of LSMGO was USD 1,267.02 per tonne. Among them, the VLSFO price decreased by approximately 2.9%, while the LSMGO price decreased by approximately 8.6%, with the decline in low-sulfur marine gas oil being more significant.
It is important to note that this reduction in the Fossil Fuel Fee is based on the average fuel prices during the reference period and does not reflect the current spot oil price increases caused by the Middle East conflict. The Fossil Fuel Fee adopts a quarterly lagged adjustment mechanism, meaning that the current quarter's rates are calculated based on the previous quarter's average fuel prices. Therefore, current oil price fluctuations will be gradually reflected in subsequent quarterly rate adjustments.
Major Trade Lane Rate Adjustments
This Fossil Fuel Fee adjustment covers all of Maersk's major global trade lanes, including dozens of routes such as Far East to Europe, Far East to North America, Far East to South America, Europe to South America, Oceania, Africa, the Middle East, and intra-Southeast Asia. Rates are set separately for dry containers, special equipment, NOR containers, and reefer containers, with reefer rates typically approximately 50% higher than dry container rates.
On the Asia-Europe trade lane, the Fossil Fuel Fee for a 40-foot dry container from Far East Asia to North Europe will be reduced from USD 595 in the third quarter to USD 570, a decrease of USD 25 or approximately 4.2%. On the reverse trade lane from North Europe to Far East Asia, the fee for a 40-foot dry container will be reduced from USD 416 to USD 399, a decrease of USD 17 or approximately 4.1%. The rate for a 40-foot dry container on the Far East Asia to Mediterranean route will be reduced from USD 568 to USD 547, and the Mediterranean to Far East Asia route will be reduced from USD 388 to USD 373.
On the transpacific trade lane, the Fossil Fuel Fee for a 40-foot dry container from Far East Asia to the US West Coast will be reduced from USD 604 to USD 579, a decrease of USD 25. The rate for a 40-foot dry container from Far East Asia to the US East Coast will be reduced from USD 1,085 to USD 1,058, a decrease of USD 27. On the reverse trade lane, the rate for a 40-foot dry container from the US West Coast to Far East Asia will be reduced from USD 345 to USD 333, and from the US East Coast to Far East Asia from USD 660 to USD 640.
On the South America trade lanes, the adjustment 幅度 is relatively larger. The Fossil Fuel Fee for a 40-foot dry container from West Coast South America to Europe will be reduced from USD 1,037 to USD 990, a decrease of USD 47 or approximately 4.5%. The rate for a 40-foot dry container from Europe to West Coast South America will be reduced from USD 1,063 to USD 1,015, a decrease of USD 48 or approximately 4.5%. The rate for a 40-foot dry container from Far East Asia to West Coast South America and Central America will be reduced from USD 965 to USD 933.
On the Africa trade lanes, the Fossil Fuel Fee for a 40-foot dry container from Far East Asia to West Africa is USD 1,232, from Europe to West Africa is EUR 756, and from the Americas to West Africa is USD 1,166. On the East Africa routes, the rate for a 40-foot dry container from Far East Asia to East Africa is USD 905, and from Europe to East Africa is USD 617.
On the Oceania trade lanes, the Fossil Fuel Fee for a 40-foot dry container from Far East Asia to Australia is USD 663, and from Australia to Far East Asia is USD 422. The rate for a 40-foot dry container from Far East Asia to New Zealand is USD 494, and from New Zealand to Far East Asia is USD 798. The rate for a 40-foot dry container from Oceania to the Americas is USD 1,139, and from the Americas to Oceania is USD 1,344.
On the Middle East and South Asia trade lanes, the Fossil Fuel Fee for a 40-foot dry container from Far East Asia to the Middle East is USD 566, and from the Middle East to Far East Asia is USD 407. The rate for a 40-foot dry container from the Indian Sub-Continent to Far East Asia is USD 646, and from Far East Asia to the Indian Sub-Continent is USD 494. The rate for a 40-foot dry container on the intra-Gulf route is USD 166, one of the lowest among all trade lanes.
On regional trade lanes, the Fossil Fuel Fee for a 40-foot dry container within Southeast Asia (excluding Myanmar) is USD 200, within Northeast Asia and Greater China is USD 200, within the Mediterranean is EUR 432, and within North Europe is EUR 102.
Scope of Application and Exchange Rate Conversion
This Fossil Fuel Fee adjustment applies to long-term contracts with a validity period exceeding three months. For short-term contracts and spot market quotations, Maersk adopts a different bunker surcharge mechanism and is not affected by this adjustment.
The new rates are denominated in US dollars as the base currency, while also providing converted rates in euros, British pounds, New Zealand dollars, and Australian dollars. The exchange rates used for this adjustment are: 1 USD = 0.8684 EUR, 0.74704 GBP, 1.72021 NZD, and 1.42088 AUD.
For some regional trade lanes, Maersk directly prices in local currencies. For example, intra-North Europe routes are priced in euros, intra-Mediterranean routes offer pricing in three currencies simultaneously: euros, British pounds, and US dollars, and intra-Australia-New Zealand routes offer pricing in three currencies: US dollars, Australian dollars, and New Zealand dollars.
Synchronized Terminal Handling Charge Adjustments
In addition to the Fossil Fuel Fee, Maersk also announced that starting from 1 October 2026, it will simultaneously revise the origin and destination Terminal Handling Charges (THC) across multiple markets in Europe and the Asia-Pacific region.
The markets covered by this terminal handling charge adjustment include: Germany, Belgium, the Netherlands, the United Kingdom, Denmark, Norway, Sweden, Finland, Poland, the Baltic states, France, Italy, Spain, Portugal, Croatia, Slovenia, Turkey, Israel, Georgia, Japan, South Korea, and New Zealand.
In Germany, the origin and destination handling charge for dry containers is EUR 300 (approximately USD 347) per container, and for reefer containers is EUR 450 (approximately USD 521).
In Japan, the handling charge for a 20-foot dry container is JPY 36,000 (approximately USD 226), and for 40-foot and 45-foot dry containers is JPY 54,000 (approximately USD 338).
In Georgia, the origin handling charge for export cargo is USD 355 for a 20-foot dry container and USD 425 for 40-foot and 45-foot dry containers. The destination handling charge for import cargo is USD 425 and USD 505 respectively, with higher rates for reefer containers and dangerous goods.
Explanation of the Fossil Fuel Fee Mechanism
The Fossil Fuel Fee is not a new surcharge item introduced by Maersk. Since July 2024, Maersk has been applying the Fossil Fuel Fee mechanism to new contract quotations with a validity period exceeding three months, replacing the traditional Bunker Adjustment Factor (BAF) and Low Sulfur Surcharge (LSS).
The core feature of this mechanism is the separation of fuel costs from contract freight rates, through an independent, transparent, and traceable rate formula that is adjusted quarterly based on changes in the Platts fuel price index. This mechanism aims to reduce shipping lines' risk exposure to fuel price fluctuations while providing cargo owners with a more transparent and predictable method of fuel cost accounting.
The calculation formula for the Fossil Fuel Fee is based on the average prices of two fuels, VLSFO and LSMGO, during the reference period, combined with the fuel consumption and vessel types of each trade lane, to derive the specific rate for each route and container type. Rates are updated quarterly, effective on 1 January, 1 April, 1 July, and 1 October respectively.
For existing contracts signed before July 2024 that still contain traditional BAF and LSS clauses, Maersk will continue to execute according to the original contract terms until the contract is renewed, at which point it will convert to the Fossil Fuel Fee mechanism. Therefore, the market currently has a situation where both old and new bunker surcharge mechanisms coexist.
Distinction from Other Fuel-Related Surcharges
It should be noted that this Fossil Fuel Fee adjustment effective on 1 October is completely independent from the Emergency Inland Fuel and Energy Surcharge that Maersk implemented on 2 September for Store Door door-to-door transportation services in the Nordic region. The two are separate charge items and do not affect each other.
This Emergency Inland Fuel and Energy Surcharge is a temporary charge for Store Door door-to-door transportation services in the Nordic region, imposed due to fuel supply disruptions and price spikes caused by the Middle East conflict. The charge percentage ranges from 3% in Lithuania to 17% in Estonia, with no additional charge in Norway. This surcharge is a temporary measure that will be reviewed monthly based on energy market developments and will be cancelled in due course once fuel prices decline.
In addition, Maersk also imposes an Emissions Surcharge (EMS/ESS) on some trade lanes to cover compliance costs with the EU Emissions Trading System (EU ETS) and FuelEU Maritime regulations. This surcharge is also reviewed and adjusted quarterly, independent from the Fossil Fuel Fee, separately accounting for fuel costs and carbon emission costs.
In the Middle East region, Maersk has also imposed an Emergency Bunker Surcharge (EBS) since March 2026 to address fuel supply disruptions and abnormal price fluctuations caused by the Strait of Hormuz conflict. This surcharge is a global temporary charge applicable to all routes passing through the Middle East region, levied in parallel with the Fossil Fuel Fee.
Industry Impact and Future Outlook
Maersk's decision to reduce the Fossil Fuel Fee appears rather unusual against the backdrop of current international oil prices continuing to rise due to the Middle East conflict. This adjustment reflects the lagging characteristic of the Fossil Fuel Fee mechanism - that is, rate adjustments are based on historical average prices rather than current spot prices. For cargo owners, this means that fuel costs under long-term contracts will decline in the fourth quarter, helping to alleviate some logistics cost pressure.
However, it is necessary to be vigilant that the oil price increases caused by the current Middle East geopolitical conflict will be gradually reflected in subsequent quarterly Fossil Fuel Fee adjustments. If the conflict persists, the Fossil Fuel Fee in the first quarter of 2027 is likely to rebound significantly, and cargo owners should fully consider this risk factor when signing long-term contracts.
From an industry competition perspective, Maersk, as one of the world's largest container shipping companies, its rate adjustments often serve as a bellwether. Whether other major shipping lines such as Mediterranean Shipping Company (MSC), CMA CGM, and Hapag-Lloyd will follow suit in reducing bunker surcharges warrants close attention. If an industry-wide downward trend emerges, it will help stabilize overall maritime shipping costs in the fourth quarter.
From a more macro perspective, the promotion and application of the Fossil Fuel Fee mechanism marks a shift in the shipping industry's fuel cost accounting from traditional opaque pricing toward a more transparent, formula-based, and traceable direction. This transformation not only helps cargo owners more accurately predict and manage logistics costs but also contributes to advancing the overall digitalization and standardization process of the shipping industry.
In the future, with the full implementation of the EU Emissions Trading System and the gradual rollout of the FuelEU Maritime regulations, the cost structure of the shipping industry will become more diversified, with fuel costs and carbon emission costs accounted for separately and adjusted independently. Cargo owners and freight forwarding enterprises need to establish more refined cost management systems and closely monitor the adjustment dynamics of various surcharges to cope with the increasingly complex maritime shipping cost environment.
