Hapag-Lloyd introduces IMO 2020 transition charge
Date: Friday, November 1, 2019
Source: Lloyd's List
HAPAG-Lloyd is adding an additional surcharge to spot rates in order to cover the transitional costs of transferring to using low-sulphur fuels ahead of the introduction of International Maritime Organization regulations in January.
The IMO 2020 Transition Charge will come into force from December 1 for all ‘FAK’ (Freight of all kinds), spot and Quick Quotes business and will be additional to the Hamburg-based carrier’s Marine Fuel Recovery mechanism, which it introduced in February.
“Switching from high-sulphur fuels to the new low-sulphur fuel will inevitably result in higher fuel prices in the short term,” said chief executive Rolf Habben Jansen. “Volatility is also expected to increase, particularly during the transition period.”
He said the charge will enable the company to meet the additional costs as well as have a sustainable and transparent method of pricing its services.
Mid- and long-term business will not be affected by the move and will be charged with the MFR only.
For China exports, only the transition charge will be applied, and not the MFR during the transitional period.