Monday December 1st. 2014
“Clean Fuel” supplemental surcharge cancelled. Four percent cost of living increase GRI January 1st 2015.
Importers will be aware that BCL was anticipating that the US mandated “Clean Fuel” environmental regulations, which come into effect on January 1st 2015, would have added approximately $55 to the existing fuel surcharge. As the price of oil has dropped dramatically since the announcement in the press, BCL is pleased to advise that this anticipated supplemental increase will now not be necessary.
For 2014, BCL decided to defer the usual 2% cost of living ocean freight rate adjustment. Importers benefitted as a result. However for 2015, BCL has received notice of a significant increase in the company’s Bermuda stevedoring expense commencing on January 1st 2015. The net increase to BCL will be in the region of 6%. BCL’s US stevedoring labor costs were increased in October as well as most other operational charges including trucking for Canadian and US intermodal moves. The company also purchased new refrigerated equipment.
BCL is very sensitive to the fact that Bermuda is still recovering economically. Several customers were contacted to gather feedback on needed increases to cover the above mentioned escalating costs. Food importers were particularly concerned about the effect on the cost of food. As such the cost of living rate adjustment has been kept to a minimum at approximately 4% commencing on January 1st 2015.
GRI (General Rate Increase) amounts
Dry US containers: +$125
Refrigerated US containers: +$165
US Intermodals: Same as above
Toronto and Montreal dry: +$200
Toronto and Montreal reefer: +$250
Halifax dry: +$300
Halifax reefer: +$350
The US dry container increase of $125 equates to approximately 12 cents per cubic ft, and for refrigerated containers approximately 18 cents per cubic ft. Meanwhile, BCL has invested heavily during 2014 to help lower the company’s administration expenses and future equipment operation’s costs. BCL will continue to invest in ways to lower expenses while maintaining fast and reliable service levels.
The new rates will become effective on January 1st 2015.
Thank you for your continued support.