Dear Customer,

Maersk Line is introducing its new Standard Bunker Adjustment Factor (SBF) to replace the existing Bunker Adjustment Factor (BAF) from 1 January, 2012 for all trades except the Pacific trade between Asia and North America. Making it easier for you, the new SBF formula provides a simpler, updated and transparent calculation for bunker price adjustment in service contracts and in the tariff. For the Pacific trade, the SBF will be effective on 1 May, 2012.

Many factors have changed since Maersk Line’s existing BAF formula was introduced in 2009. We have in some trades introduced slow-steaming, which has reduced bunker consumption but increased transit times. Deployment has been changed in many trade lanes and simultaneously, we have switched to using low sulphur bunker in many areas in order to minimize pollution. With the new SBF we have simplified and updated the formula to reflect this and to ensure our customers continued transparency and a fair BAF calculation.

The new SBF formula contains only the elements necessary to calculate the SBF level at all times. For that purpose we have removed the Bunker Base element, which was different per trade, and which had no effect on the fluctuations of the BAF levels.

The SBF is simply an adjustment factor for bunker price fluctuations to ensure that neither the customer nor Maersk Line is punished by bunker price fluctuations during the contract period. The new and simpler SBF continue to provide our customers with a fair and correct linkage to the fluctuations in bunker prices – whether they go up or down. In short, SBF means fewer constants, easier calculation and improved transparency.

For contracts continuing after 1 January, 2012 (1 May, 2012 for Pacific contracts), the current BAF formula will continue to apply as today until the contracts expire.

Contracts effective from 1 January, 2012 (1, May 2012 for Pacific contracts) and onwards will be subject to SBF. The new SBF levels will be different from the current BAF levels, primarily because of the removal of the Bunker Base element.

In case you have further queries, please contact your local Maersk Line representative.

Best regards,

Maersk Line