TSA -- [ Bunker Charge Calculator ]

Eastbound Bunker
Charge Calculator

Bunker charges have been in place in the transpacific trade since the 1980s, as bunker fuel prices became increasingly volatile and it became necessary for container lines to recover fuel costs through a separate charge, adjusted periodically according to a formula.

TSA’s guideline eastbound bunker charge has been modified several times – in 2002, 2008, 2011 and 2012 – to adjust for changing TSA membership and fleet characteristics, as well as slow-steaming of ships, mandated use of low-sulfur fuel within North American coastal zones, and other factors affecting fuel costs over time.

An important element of the bunker charge is transparency. This page provides customers, regulators and the shipping public with the rationale behind and components included in TSA’s bunker formula. It also gives them the means to 1) track fuel price data, over the reporting period and historically; and 2) use the TSA calculation methodology to verify and, to the extent possible over the reporting period, anticipate upcoming adjustments to the charge.

Bunker Charge
The TSA bunker charge formula is an equation based on a simple set of elements:

Average weekly bunker price (metric tons)
multiplied by
Average fuel consumption per sailing (metric tons burned per day)
multiplied by
Average sailing time (days at sea)
divided by the

Average loadable slots per vessel (effective FEU capacity x average utilization)

Factors relating to each individual carriers’ vessel operations are weighted according to that carrier’s market share.

The above equation produces a baseline cost per FEU for the current average weekly bunker price over the 13-week reporting period. The cost per FEU is then adjusted to 1) reflect added fuel-related costs for repositioning of empty containers in a heavily imbalanced trade; and 2) subtract $80 per FEU of bunker cost historically embedded in the bunker charge since it was established.

Average U.S. West Coast weekly bunker prices reflect an average of Hong Kong and Los Angeles prices. Average U.S. East Coast/Gulf weekly bunker prices reflect an average of Hong Kong and New York prices.

Prices are developed independently by energy industry analysts Bunkerworld, and are posted on this page, as well as on Bunkerworld’s site.

The TSA bunker charge is adjusted quarterly, on January 1, April 1, July 1 and October 1, based on a 13-week reporting period that ends approximately 30 days before the effective date of the next adjustment (September-November, December-February, March-May and June-August, respectively).

Calculation
The simplest way to calculate the Bunker Charge is to:

Track the average West Coast and East Coast/Gulf prices each week during the quarterly periods shown above;

Total the prices for the applicable calculation period and divide by the number of weeks (13) to arrive at a quarterly average; and

Look up the charge for that average West Coast or East Coast/Gulf price in the matrix at right.

Note: By adding prices posted to date in a reporting period and dividing by the number of weeks to date in the period, it is possible to get a sense of the likely upcoming charge at the end of 13 weeks. Obviously, the earlier in the period this is done, the less accurate forecasting is likely to be.

More detail about the structure and calculation methodology behind the charge can be found in the Bunker Charge Fact Sheet, also located in this section of the TSA web site.

Low-Sulfur Component
Similar methodology is used to calculate the Low-Sulfur Component (LSC) to the Bunker Charge. The LSC was adopted following the August 1, 2012 establishment of a North American Emissions Control Area (ECA) under the International Maritime Organization’s MARPOL Annex VI protocol, to which the U.S. and Canada are signatories. The protocol requires container vessels to switch to low-sulfur fuels while operating within 200 miles of the contiguous U.S. and Canadian coasts, plus Hawaii.

The LSC was adopted by TSA lines to recover the difference in cost for burning premium low-sulfur fuel during sailing days within the North American ECA. It applies the same basic formula as for the Bunker Charge, but

Backs out the sailing days within the 200-mile coastal zone (2.698 sailing days to the West Coast and 4.42 days to the East Coast and Gulf) at the average standard bunker price and fuel consumption rates;

Substitutes the low-sulfur fuel cost and average fuel consumption levels for that part of the total sailing;

Measures the differential cost between an average sailing using only standard bunker fuel and one where low-sulfur fuel was burned within the ECA zone at the higher fuel price and adjusted consumption level; and then

Adds that cost difference into the existing Bunker Charge.

All elements of the LSC calculation apart from fuel price, sailing days and fuel consumption rates are the same as for the Bunker Charge calculation. The LSC is adjusted quarterly, with the same reporting periods and effective dates as the Bunker Charge.

TSA calculates low-sulfur fuel cost using a 13-week weighted average of prices reported by the Platt’s service at five port locations: Los Angeles, Oakland, Seattle, Charleston and New York.

In the interest of simplicity, TSA provides a set of tables at right that indicate the weekly weighted average cost differentials between standard bunker and low-sulfur fuel prices, with a matrix that translates those differentials into the quarterly LSC.

As with the Bunker Charge, site visitors can:

- Track the average West Coast and East Coast/Gulf price differential over 13 weeks;

- Apply the average differential for the reporting period to the LSC matrix to determine the LSC; and

- Add the LSC into the Bunker Charge for the total charge to be applied over the coming calendar quarter.

More information on the structure and calculation methodology behind both the Bunker Charge and the Low-Sulfur Component can be found in the Bunker Surcharge Fact Sheet, also in the Ancillary Charges menu of this site.

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CALCULATING THE BUNKER CHARGE


Posted Weekly Average Bunker Fuel Prices (US$ per Metric Ton)
Week ending
Mar 04 2013 Mar 11 Mar 18 Mar 25 Apr 01 Apr 08 Apr 15 Apr 22 Apr 29 May 06 May 13 May 20 May 27	WC EC/Gulf WC EC/Gulf WC EC/Gulf WC EC/Gulf WC EC/Gulf WC EC/Gulf WC EC/Gulf WC EC/Gulf WC EC/Gulf WC EC/Gulf WC EC/Gulf WC EC/Gulf WC EC/Gulf	641.00 635.00 657.50 639.00 633.50 636.50 643.50 627.50 646.00 635.50 635.50 623.00 621.50 614.00 616.50 598.00 634.00 607.50 621.00 619.00 618.50 610.50 621.00 608.00


TSA Fuel Price-Bunker Charge Conversion Table
Average	Bunker Charge for Next Quarter (US$)
Weighted Fuel Price	West Coast		East Coast/Gulf
(US$/Ton) 880.01 - 900 860.01 - 880 840.01 - 860 820.01 - 840 800.01 - 820 780.01 - 800 760.01 - 780 740.01 - 760 720.01 - 740 700.01 - 720 680-01 - 700 660.01 - 680 640.01 - 660 620.01 - 640 600.01 - 620 580.01 - 600 560.01 - 580 540.01 - 560 520.01 - 540 500.01 - 520 480-01 - 500 460.01 - 480 440.01 - 460 420.01 - 440 400.01 - 420 380.01 - 400 360.01 - 380 340.01 - 360 320.01 - 340 300.01 - 320 280.01 - 300 260.01 - 280 240.01 - 260 220.01 - 240 200.01 - 220 180.01 - 200 160.01 - 180 140.01 - 160 120.01 - 140 100.01 - 120 080.01 - 100	20' 554 542 531 520 509 498 486 475 464 453 442 430 419 408 397 386 374 363 352 341 330 318 307 296 285 274 262 251 240 229 218 206 195 184 173 162 150 139 128 117 106	40' 692 678 664 650 636 622 608 594 580 566 552 538 524 510 496 482 468 454 440 426 412 398 384 370 356 342 328 314 300 286 272 258 244 230 216 202 188 174 160 146 132	20' 1111 1087 1063 1039 1015 991 967 943 919 895 871 847 823 799 775 751 727 703 679 655 631 607 583 559 535 511 487 463 439 415 391 367 343 319 295 271 247 223 199 175 151	40' 1389 1359 1329 1299 1269 1239 1209 1179 1149 1119 1089 1059 1029 999 969 939 909 879 849 819 789 759 729 699 669 639 609 579 549 519 489 459 429 399 369 339 309 279 249 219 189


Weekly Average Price Differentials Low-Sulfur vs. Standard Bunker Fuel
Week Of: Mar 04 2013 Mar 11 Mar 18 Mar 25 Apr 01 Apr 08 Apr 15 Apr 22 Apr 29 May 06 May 13 May 20 May 27	USWC 145.39 145.79 143.17 157.61 152.49 148.89 159.72 153.22 179.75 222.37 209.09 233.32	USEC/Gulf 70 63 58 58 55 58.5 58.5 59.5 55 53 55.5 56
Source: Platt’s Reminder: Figures denote difference in price; as example, “100” means that at the load port in question, low-sulfur fuel cost $100/MT more than standard bunker fuel.


Low-Sulfur Fuel Price Component
Average 13-Week Price Differential (US$/MT)	Low-Sulfur Component for Next Quarter (US$)
US West Coast 211-230 191-210 171-190 151-170 131-150 111-130 91-110 71-90 70 and below US East Coast/Gulf 121-140 101-120 81-100 61-80 41-60 21-40 20 and below	20’ 18 16 14 12 10 7 5 2 0 20’ 25 21 17 13 9 5 0	40’ 23 20 17 15 12 9 6 3 0 40’ 31 26 21 16 11 6 0

HISTORIC DATA


Historic Bunker Surcharges (per FEU)
2002-12 1.1.02 4.1.02 7.1.02 10.1.02 1.1.03 4.1.03 7.1.03 10.1.03 1.1.04 4.1.04 7.1.04 10.1.04 1.1.05 4.1.05 7.1.05 10.1.05 1.1.06 4.1.06 5.1.06 6.1.06 7.1.06 8.1.06 9.1.06 10.1.06 11.1.06 12.1.06 1.1.07 2.1.07 3.1.07 4.1.07 5.1.07 6.1.07 7.1.07 8.1.07 9.1.07 10.1.07 11.1.07 12.1.07 1.1.08 2.1.08 3.1.08 4.1.08 5.1.08 6.1.08 7.1.08 8.1.08 9.1.08 10.1.08 11.1.08 12.1.08 1.1.09 2.1.09 3.1.09		US$ 95 50 140 185 185 230 230 230 185 230 230 275 320 275 410 455 590 545 590 635 680 590 635 635 545 455 455 455 455 545 545 590 635 635 680 680 680 770 950 905 905 860 995 1040 1130 1265 1490 1355 1220 770 410 365 410
Revised Formula
Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011	WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC	US$ 148 309 188 385 308 613 348 689 368 727 368 727 348 689 368 727 468 879 568 1107
Formula Adjusted for Slow Steaming
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012	WC EC WC EC WC EC WC EC WC EC	20' 430 847 430 847 453 871 464 895 408 799	40' 538 1059 538 1059 566 1089 580 1119 510 999
Formula Adjusted to Include Low-Sulfur & Intermodal Fuel Components
Q1 2013 Q2 2013 Q3 2013 Q4 2013	WC EC/Gulf Intermodal WC EC/Gulf Intermodal WC EC/Gulf Intermodal WC EC Intermodal	20' 442 840 746 429 812 724	40' 553 1050 933 536 1015 905


Historic Low-Sulfur Bunker Component($ per FEU)
Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013	WC EC WC EC WC EC WC EC WC EC	20' 14 17 12 17 10 13	40' 17 21 15 21 12 16


Weekly Weighted Average Bunker Fuel Prices (US$ per Metric Ton):
2008 Sep 01 Sep 08 Sep 15 Sep 22 Sep 29 Oct 06 Oct 13 Oct 20 Oct 27 Nov 03 Nov 10 Nov 17 Nov 24 Dec 01 Dec 08 Dec 15 Dec 22 Dec 29 2009 Jan 05 Jan 12 Jan 19 Jan 26 Feb 02 Feb 09 Feb 16 Feb 23 Mar 02 Mar 09 Mar 16 Mar 23 Mar 30 Apr 06 Apr 13 Apr 20 Apr 27 May 04 May 11 May 18 May 25 Jun 01 Jun 08 Jun 15 Jun 22 Jun 29 Jul 06 Jul 13 Jul 20 Jul 27 Aug 03 Aug 10 Aug 17 Aug 24 Aug 31 Sep 08 Sep 14 Sep 21 Sep 28 Oct 5 Oct 12 Oct 19 Oct 26 Nov 2 Nov 9 Nov 16 Nov 23 Nov 30 Dec 7 Dec 14 Dec 21 Dec 28 2010 Jan 4 Jan 11 Jan 18 Jan 25 Feb 1 Feb 8 Feb 15 Feb 22 Mar 1 Mar 8 Mar 15 Mar 22 Mar 29 Apr 5 Apr 12 Apr 19 Apr 26 May 3 May 10 May 17 May 24 May 31 Jun 7 Jun 14 Jun 21 Jun 28 Jul 5 Jul 12 Jul 19 Jul 26 Aug 2 Aug 9 Aug 16 Aug 23 Aug 30 Sep 6 Sep 13 Sep 20 Sep 27 Oct 4 Oct 11 Oct 18 Oct 25 Nov 1 Nov 8 Nov 15 Nov 22 Nov 29 Dec 6 Dec 13 Dec 20 Dec 27 2011 Jan 3 Jan 10 Jan 17 Jan 24 Jan 31 Feb 7 Feb 14 Feb 21 Feb 28 Mar 7 Mar 14 Mar 21 Mar 28 Apr 4 Apr 11 Apr 18 Apr 25 May 2 May 9 May 16 May 23 May 30 Jun 6 Jun 13 Jun 20 Jun 27 Jul 4 Jul 11 Jul 18 Jul 25 Aug 1 Aug 8 Aug 15 Aug 22 Aug 29 Sep 05 Sep 12 Sep 19 Sep 26 Oct 03 Oct 10 Oct 17 Oct 24 Oct 31 Nov 07 Nov 14 Nov 21 Nov 28 Dec 05 Dec 12 Dec 19 Dec 26 2012 Jan 02 Jan 09 Jan 16 Jan 23 Jan 30 Feb 06 Feb 13 Feb 20 Feb 27 Mar 05 Mar 12 Mar 19 Mar 26 Apr 02 Apr 09 Apr 16 Apr 23 Apr 30 May 07 May 14 May 21 May 28 Jun 04 Jun 11 Jun 18 Jun 25 Jul 02 Jul 09 Jul 16 Jul 23 Jul 30 Aug 06 Aug 13 Aug 20 Aug 27 Sep 03 Sep 10 Sep 17 Sep 24 Oct 01 Oct 08 Oct 15 Oct 22 Oct 29 Nov 05 Nov 12 Nov 19 Nov 26 Dec 03 Dec 10 Dec 17 Dec 24 Dec 31 2013 Jan 07 Jan 14 Jan 21 Jan 28 Feb 04 Feb 11 Feb 18 Feb 25 Mar 04 Mar 11 Mar 18 Mar 25 Apr 01 Apr 08 Apr 15 Apr 22 Apr 29 May 06 May 13 May 20	WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC WC EC	US$ 692.50 707.50 644.00 624.50 583.50 543.00 579.00 595.00 602.50 597.50 540.00 522.50 463.00 443.00 397.00 384.00 369.00 324.00 321.50 301.00 280.50 276.00 236.00 243.00 216.50 226.00 227.50 240.00 224.00 219.00 248.50 240.00 245.50 229.50 246.00 218.00 274.00 237.50 278.00 258.00 277.00 266.50 240.00 281.00 276.50 278.00 261.00 277.00 273.00 272.00 253.00 256.00 263.50 258.50 255.50 253.50 245.00 246.50 252.50 264.50 252.00 267.00 282.00 292.50 280.50 297.00 301.50 298.50 308.00 293.00 316.50 323.50 369.00 352.50 353.50 345.50 367.50 349.00 386.00 387.00 401.50 391.00 387.50 401.00 400.50 401.50 416.50 410.00 403.00 397.50 391.50 370.00 410.00 412.50 447.00 432.00 450.00 437.00 443.50 440.00 435.50 429.00 446.00 452.50 443.50 446.00 435.50 426.50 429.00 426.50 431.50 433.50 430.00 416.00 425.50 417.50 435.50 441.50 453.00 458.50 469.00 476.50 461.00 466.50 464.00 476.50 472.00 477.00 472.00 479.00 472.50 478.00 482.50 475.50 465.00 453.50 479.00 465.50 471.50 472.00 498.50 495.00 506.50 511.00 479.00 486.00 464.00 463.00 454.50 461.50 451.00 444.00 462.50 458.50 466.50 480.50 467.00 475.00 471.50 481.50 462.50 468.50 451.50 462.00 473.50 474.50 476.00 481.50 482.50 484.00 483.00 485.50 496.00 501.50 500.00 507.00 480.00 479.00 465.00 461.50 447.50 429.00 457.00 442.50 439.50 432.50 444.50 446.00 450.00 459.00 454.00 452.00 430.00 428.00 441.00 444.50 450.00 450.50 464.00 456.50 465.50 462.50 470.00 467.00 445.50 451.50 442.50 448.50 443.50 454.50 456.00 458.50 454.00 460.00 452.00 459.00 449.00 455.00 469.00 474.00 475.00 482.50 466.50 471.50 476.50 477.00 477.50 478.00 500.50 499.00 489.00 497.00 493.50 481.00 502.00 495.00 523.00 514.00 521.00 507.00 529.50 512.50 536.00 514.00 541.50 520.00 531.50 524.00 550.00 535.00 551.00 534.50 561.50 550.00 602.00 578.00 604.00 599.00 608.50 603.00 649.00 646.50 657.00 655.00 650.50 659.00 651.00 644.00 667.00 652.50 698.50 670.00 702.00 695.50 692.50 685.50 691.00 688.00 689.00 689.00 665.50 657.00 653.00 640.00 642.00 637.00 649.00 659.00 664.50 674.50 675.50 689.50 655.50 651.50 639.70 639.50 663.50 658.00 684.50 669.50 687.00 673.50 691.50 683.50 692.00 687.00 668.50 643.00 666.50 643.00 662.00 640.50 670.50 662.50 674.00 662.00 668.25 660.25 661.50 664.50 636.00 635.50 640.50 637.50 648.50 651.50 684.00 680.00 674.50 676.50 692.00 675.50 700.00 692.50 708.00 698.00 685.50 657.50 686.00 666.00 689.00 675.50 670.00 653.00 661.00 645.50 686.50 671.00 697.00 676.50 724.00 700.50 731.50 713.50 741.50 709.00 745.00 715.00 734.50 722.00 748.00 732.50 748.00 735.00 749.00 748.50 742.50 747.50 748.50 746.00 746.50 752.50 740.00 743.50 749.50 743.50 749.00 739.00 746.50 726.50 731.50 718.00 735.50 724.00 715.50 692.50 695.50 675.00 679.00 655.00 683.00 648.50 618.00 596.50 609.50 604.50 601.00 600.50 572.50 566.00 590.00 579.50 601.50 598.00 616.50 609.00 628.00 631.00 627.00 641.50 641.50 646.50 671.00 657.50 668.00 668.00 696.00 676.50 690.00 676.00 690.00 680.50 699.50 694.50 679.00 660.50 673.50 666.00 659.00 645.00 672.00 655.50 665.50 643.00 665.00 635.00 650.50 619.50 646.50 619.50 662.50 632.50 654.00 630.50 644.00 625.50 623.50 612.00 637.00 614.50 630.00 615.00 630.00 619.00 647.00 640.50 644.00 638.50 634.00 640.00 652.00 640.50 673.00 661.00 683.50 677.00 667.50 675.50 656.00 652.00 641.00 635.00 657.50 639.00 633.50 636.50 643.50 627.50 646.00 635.50 635.50 623.00 621.50 614.00 616.50 598.00 634.00 607.50 621.00 619.00 618.50 610.50 621.00 608.00


Historic Weekly Average Price Differentials Low-Sulfur vs. Standard Bunker Fuel
Week Of: Jun 4 2012 Jun 11 Jun 18 Jun 25 Jul 2 Jul 9 Jul 16 Jul 23 Jul 30 Aug 6 Aug 13 Aug 20 Aug 27 Sep 03 Sep 10 Sep 17 Sep 24 Oct 01 Oct 08 Oct 15 Oct 22 Oct 29 Nov 05 Nov 12 Nov 19 Nov 26 Dec 03 Dec 10 Dec 17 Dec 24 Dec 31 Jan 07 2013 Jan 14 Jan 21 Jan 28 Feb 04 Feb 11 Feb 18 Feb 25 Mar 04 Mar 11 Mar 18 Mar 25 Apr 01 Apr 08 Apr 15 Apr 22 Apr 29 May 06 May 13 May 20	USWC 100 107.92 137.0505 137.088 143.108 145.148 154.256 160.79 167.424 248.02 259.01 259.01 271.485 195.19 183.97 193.39 194.99 157.07 166.30 165.20 134.22 131.01 132.63 131.45 144.28 132.89 127.29 139.5 133.59 134.21 134.21 134.21 139.825 147.84 144.07 144.62 144.62 145.44 145.39 145.39 145.79 143.17 157.61 152.49 148.89 159.72 153.22 179.75 222.37 209.09 233.32	USEC/Gulf 100 89 99 87.5 94 95 85 80.5 80.5 99 93.5 100 105 90.5 87.5 87.5 85 87.5 80 74.04 74.5 80 88.5 88 86.5 89 90.5 72.5 74 66 58.5 74 82 74 73 76.5 65.75 67.5 70 70 63 58 58 55 58.5 58.5 59.5 55 53 55.5 56
Source: Platt’s Reminder: Figures denote difference in price; as example, “100” means that at the load port in question, low-sulfur fuel cost $100/MT more than standard bunker fuel.

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