Hapag-Lloyd Welcomes the New Regulation; it will make the Industry Greener

Hapag-Lloyd Welcomes the New Regulation; it will make the Industry Greener

Hapag-Lloyd Welcomes the New Regulation; it will make the Industry Greener

Meeting the IMO requirements “will entail a radical transformation for the entire shipping industry,” the company said. “However, the good news in this is that the regulation will make the industry greener. For this reason, Hapag-Lloyd welcomes the new regulation and views it as an important step towards setting uniform standards that will benefit both, the environment and people.” 

Hapag-Lloyd said it estimates its fuel costs will rise by about $1 billion per year in 2020 when the new IMO regulation goes into effect. That’s based on the assumption the price difference between high-sulfur fuel oil, which can contain as much as 3.5 percent sulfur, and low-sulfur fuel oil, with a sulfur content of 0.5 percent or less, is assumed to be $250 per tonne. 

And the company, like Maersk and MSC, has outlined its plans for marine fuel recovery (MFR) charge in advance of the IMO’s new regulation, effective 1 Jan, 2020. 

   The new MFR will be calculated by multiplying the average price that Hapag-Lloyd pays for fuel globally by a factor that adjusts for the average size ships utilized in individual trades, their average speeds, how much time they spend under way or in port, as well as average utilization of ships.
   Unlike Maersk, Hapag-Lloyd said its MFR will be the same on headhaul and backhaul legs of services.
   “With our new marine fuel recovery mechanism, we have developed a system for our customers that we think is fair, as it allows for a causal, transparent and easy-to-understand calculation of fuel costs,” said Hapag-Lloyd.
   It said the MFR will be reviewed quarterly — or monthly if fuel price fluctuations are above $45 per tonne.  

   Hapag-Lloyd said while it will test at least two ships with scrubbers in 2019 and operate another ship with LNG, “Using low-sulfur fuel oil will be the key solution for the shipping industry and Hapag-Lloyd to remain compliant. Furthermore, it is the most environmentally friendly solution in the short term.”  

 The same MFR will be imposed even if a Hapag-Lloyd customer’s cargo moves on one of those ships equipped with a scrubber or is powered with LNG, since the cost of installing that equipment also must be recovered.

Source : porttoport.

Manjula

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