An Emergency Bunker Surcharge (EBS) is a fee imposed by carriers in response to fuel price increases to further cover the cost of rising fuel prices. EBS is implemented on top of BAF (Bunker Adjustment Factor) once fuel (bunker) prices have risen so high that carriers begin to lose profits (i.e. the “emergency”). The EBS can vary in amount and is usually applied as a percentage of the freight rate or as a fixed amount per container. The EBS is typically applied to specific trade lanes and is communicated to shippers through carrier announcements. It is important for shippers to be aware of these surcharges and factor them into their pricing and budgeting for cargo movements.

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