As the IMO’s 2020 Sulphur Cap is approaching, Hapag Lloyd is taking steps towards the ultimate compliance with the new regulations by introducing an IMO2020 Transition Charge (ITC) for short-term contracts as of 1 December 2019, reports Safety4Sea
Why this sudden urge?
Specifically, the company comments that being in line with IMO 2020 results to higher costs for the whole industry. Thus, they launched the transition charge to assist shipping stakeholders to follow an easier transitional experience.
Applicable To All Cargo
The ITC applies to freight of all kinds of cargo and spot business with a validity up to 3 months, whereas tender business will not be affected by the ITC.
Coping With Additional Costs
Rolf Habben Jansen, Chief Executive Officer of Hapag-Lloyd stated that:
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. 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 for our customers.
In the meantime, the company published in April its Sustainability Report, according to which is on track to reduce its CO2 emissions per TEU-kilometre by 20% by 2020, in comparison to the base year 2016.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!