| Code: 174945 |

German carrier Hapag-Lloyd has developed its own marine fuel recovery mechanism aimed at curbing the impact of fuel price hikes stemming from the 2020 sulphur cap.

TINNews |

German carrier Hapag-Lloyd has developed its own marine fuel recovery mechanism aimed at curbing the impact of fuel price hikes stemming from the 2020 sulphur cap.

Hapag-Lloyd joins  liner giants such as Maersk Line, MSC and CMA CGM in introduction of fuel surcharges , which have not been welcomed by shippers.

The company revealed earlier that it anticipates its fuel bill to increase to additional USD 1 bn from the new regulations.

This is made on the assumption that the price spread between highsulphur fuel oil (HSFO) and low-sulphur fuel oil (LSFO 0.5%) will be USD 250 US per tonne by 2020.

The new mechanism will be gradually implemented from January 1, 2019 and replace all existing fuel-related charges, the company said.

“We embrace the level playing field and environmental improvements resulting from a stricter regulation, but it is obvious that this is not for free and will create additional costs. This will be mainly reflected in the fuel bills for low-sulphur fuel oil, as there is no realistic alternative for the industry remaining compliant by 2020. With our MFR, we have developed a system for our customers that we think is fair, as it allows for a causal, transparent an easy-to understand calculation of fuel costs,” said Rolf Habben Jansen, Chief Executive Officer of Hapag-Lloyd.

The MFR is based on a formula that combines consumption with market prices for fuel oils.

 

Related News

Send Comment

Latest news Most Viewed The most popular topics
Book introduction Magazine introduction Transportation weekly روزنامه تین

Multimedia