Hapag-Lloyd will replace all existing fuel-related charges with a Marine Fuel Recovery (MFR) mechanism, in preparation for the IMO’s upcoming environmental regulations.
The MFR, which will be launched on January 1 2019, will take into account various parameters, such as the vessel consumption per day, fuel type and market price, sea and port delays and carried TEU.
According to Hapag-Lloyd, the world’s fifth largest container shipping line, the MFR will be more flexible and be better able to take into account price fluctuations, due to it having an improved coverage of upward and downward market developments.
The changes come as several other of the world’s biggest container shipping lines make adjustments to their surcharge rates ahead of the IMO’s 2020 regulations, which prohibit ships from emitting more than 0.5% of sulphur.
Hapag-Lloyd says, along with its MFR, it is currently exploring new technological options to comply with the rules, including trialling Exhaust Gas Cleaning Systems, due to take place in 2019.
Speaking about the MFR, Rolf Habben Jansen, Hapag-Lloyd’s CEO, 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.”