As explained, the move comes in an effort for the company to
mitigate fuel price volatility and transitional operational expenses.
The introduction of the International Maritime Organization
(IMO) 2020 sulphur cap as of January 1, 2020 marks a milestone for the shipping
industry to reduce marine pollution and become more sustainable.
Specifically, the limit for sulphur in fuel oil used on
board ships operating outside designated emission control areas will be reduced
to 0.50% from current 3.5%. This would result in a drop in overal SOx emissions
“Switching from high-sulphur fuels to the new low-sulphur
fuel will inevitably result in higher fuel prices in the short term. Volatility
is also expected to increase, particularly during the transition period,” Rolf
Habben Jansen, Chief Executive Officer of Hapag-Lloyd, said.
“Given these circumstances, we will implement the ITC to
cope with the additional costs as well as to have a sustainable and transparent
method of pricing our services,” he added.
According to Hapag-Lloyd, the ITC applies to freight of all
kinds cargo and spot business with a validity of up to three months. Tender
business will not be affected by the ITC.
With a fleet of 237 containerships and a total transport
capacity of 1.7 million TEU, Hapag-Lloyd is one of the world’s largest liner