Maersk announces the elimination of FFC in Germany, Austria, France, Switzerland, the Netherlands, Luxembourg and Belgium as of 01 October 2015.
As much as we all appreciate the simplification of freight rates and charges, it seems that the elimination of FFC could raise some eyebrows. It is very nice that Maersk is reducing the rates by the presently paid out FFC, but we all know that the memory of people is short. After the next GRI, the entire story of FFC will be forgotten, including the advantage that the paid out FFC should provide.
Another aspect of this step may be the liability question in case of cargo claims. So far, a forwarder who only worked on the FFC (who could live of the FFC only, but that is another question) , was not regarded as a carrier in case of claims. As soon as the freight forwarder makes a margin, however, they better be covered by a transport liability insurance and/or by a house BL plus TT insurance that limits the liabilities and covers the risks. Now, they are forced into the carrier position.
Maersk may claim that the freight rates and structures become easier in eliminating the surcharges, it may be of an advantage for customers to better and easier get the arms around a quotation or freight bill, but it will definitely make life harder for the line. In the past, customers used to accept higher charges or additionals much easier than freight increases. That chance will be lost in future.
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Dear Valued Customer,
Over the last few years, Maersk Line has been on a journey to simplify its rate structures enabling an easier way of working for our customers with our organisation. We have eliminated more than 30 surcharges and a latest measure of this is the decision to remove the Bunker Adjustment factor (SBF) from our short term rates, allowing for a more simplified contracting structure.
In line with this, we will be incorporating the Freight Forwarder Commision (FFC) into the freight rate in Germany, Austria, France, Switzerland, the Netherlands, Luxembourg and Belgium on 01 October 2015. We believe that FFC is a remnant from the Conference era and it is causing unnecessary complexity in our rate structures.
With this measure, we will align the rate structure in the North European countries to the global standard, and we will move forward to greater simplicity in the way we work with our customers. On top of that, this will lead to better invoice accuracy and through that higher customer satisfaction.
We are commited to continue to offer competive rates to forwarders and this iniative will be revenue neutral: From 01 October 2015 all rates offered to forwarders, which were previously subject to FFC, will be inclusive of FFC. In practical terms freight rate will be aligned with the average amount previously paid out in FFC in the corridor (please see below example).
In case of any questions, please do not hesitate to contact your local Maersk Line representative.
With best regards
Maersk Deutschland A/S & Co. KG
As agent of the carrier Maersk Line A/S
Am Sandtorkai 37
20457 Hamburg |
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