IMPLEMENTATION OF CRITICAL BUNKER RECOVERY - 2007 August 01

Bunker costs have been increasing for the past months and of late, bunker prices had hit record highs of over USD400/MT (IFO 180).

Due to these unprecedented increases in Bunker costs, the following Members of the Asian Feeder Discussion Group (AFDG) wish to inform the trade that with effect from 15 August 2007, they will implement a Critical Bunker Recovery (CBR) as follows, to recover these increases in costs:

Critical Bunker Recovery (CBR)

(a)   CBR of USD25.00/TEU for List "A" Ports.

        Cambodia, Indonesia, West Malaysia, Philippines, Thailand, Vietnam (HCM City).

(b)   CBR of USD50.00/TEU for List "B" Ports.

        Bangladesh, India, Pakistan, Sri Lanka, Vietnam (other than HCM City).

The CBR is applicable for all inbound and outbound SOC shipments (empty and laden) via Singapore and shall take effect from all shipments loaded on or after 15th August 2007 at the ports served by the respective feeder operators.

The CBR shall be payable with the ocean freight, on prepaid or collect basis as appropriate.

Members will be reviewing the CBR on a regular basis and the above levels of CBR will continue to apply when bunker prices for IFO 180 stay within the range of USD350/MT and USD420/MT.

CBR will be removed if the monthly average bunker prices were to fall below USD350/MT.

CBR will be revised if the monthly average bunker prices were to increase beyond USD420/MT.

Please note that the Fuel Additional (FA), implemented by feeder operators to address the normal fluctuations in bunker prices, will continue to apply.

Members have adopted voluntary policy guidelines and have observed the non-binding element of their Agreement.

ASIAN FEEDER DISCUSSION GROUP (AFDG)

Participating Feeder Operators:

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