Haulage to inland destinations to attract Inland Fuel Adjustment Factor – Maersk

Last Updated: October 14, 2022

If you are a new customer about to sign a service contract with Maersk or an existing contract customer whose rate contract is up for renewal and you ship your containers to inland destinations, get ready to pay an Inland Fuel Adjustment Factor (FAF) of up to 30%.

This is what the world’s 2nd largest container shipping line has announced today in a customer advisory.

“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.” the advisory said.

Maersk has reviewed its rate structure of inland rates for ocean transportation contracts and as of the 14th of October 2022, all inland rates will be presented as a combination of an ‘Inland Haulage’ charge 1 and ‘Inland Fuel’ charge 2 as per the below example:

Changing From	Amount
Inland Haulage Export (IHE)	$650,00

To	Amount
Inland Haulage Export (IHE)	$500,00
Inland Fuel Adjustment Factor (FAF)	30,0%
Inland Fuel Export (IFE)*	$ 150,00
Total	$650,00

(*) Calculated based on FAF% applied over Inland Haulage Export (IHE)

As the advisory does not mention any route/origin/destination, it is presumed that the FAF will apply on ALL ROUTES involving inland transportation where Maersk acts as the integrated logistics partner to the customer.

As per Maersk, while the core Inland Haulage charge will remain fixed throughout the validity of the contract, the FAF will be adjusted quarterly, based on reviews of Inland Fuel Indexes variations. Fuel indices are defined based on the country and applied based on inland service execution location.

In the advisory, Maersk has advised customers 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.”

“This FAF shall not apply to contracts that have commenced prior to the 14th of October unless otherwise agreed between the parties and EEI/EEE (Emergency Energy Surcharge) will not be applicable to contracts using the FAF Model,” the advisory read