Emergency Bunker Surcharge (EBS) is a temporary surcharge imposed by shipping lines or carriers on cargo owners to cover additional fuel costs caused by sudden sharp increases in fuel prices or tight fuel supply in the market. It is usually charged separately from ocean freight, on a per container or per revenue ton basis, and is characterized by its sudden and temporary nature. It is commonly used in international ocean shipping, especially container transport. Carriers will issue advance notices specifying the effective date, rates, and scope of application. Note: EBS is different from the regular Bunker Adjustment Factor (BAF), which is adjusted periodically on a quarterly or monthly basis, while EBS is a temporary surcharge due to unexpected factors. EBS may also coexist with Peak Season Surcharge (PSS), General Rate Increase (GRI), etc. Cargo owners should carefully check the fee details to avoid duplicate payment. In addition, the imposition and amount of EBS are unilaterally decided by the carrier. Cargo owners should confirm the latest rates before booking and specify the party responsible for surcharges in the contract to prevent trade disputes.
📝 Examples
1. Due to the recent sharp rise in international fuel prices, the shipping line has announced that starting from the 1st of next month, an Emergency Bunker Surcharge (EBS) of USD 300 per 40-foot high cube container will be applied to the Shanghai-Europe route. Customers are requested to include this cost in their quotations. (Note: The carrier temporarily imposes EBS due to a sharp fuel price increase and notifies customers to consider this cost in quotations.)
2. The CIF contract signed between our company and the buyer does not specify who bears the EBS. Now the carrier has temporarily imposed an Emergency Bunker Surcharge of USD 200 per container. It is recommended that both parties negotiate the sharing ratio as soon as possible to avoid affecting shipment. (Note: Because the contract does not stipulate the party responsible for EBS, the buyer and seller need to negotiate a solution, reminding foreign trade practitioners to pay attention to contract terms.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
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