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
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
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
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.