OOCL to Launch Bunker Recovery Surcharge as Its Switches to Low Sulphur Fuel

OOCL Hong KongImage courtesy: OOCL

Hong Kong-based Orient Overseas Container Line (OOCL) plans to meet the new sulphur cap regulations by switching to 0.5 percent low sulphur fuel.

The transition to LSF of the company’s entire fleet will start in the second half of 2019, the company said.

As a result, the container carrier expects its fuel bill to jump by over USD 0.5 billion, which the company plans to transfer to customers. Namely, OOCL is following in the footsteps of its fellow liners Maersk, MSC and Hapag-Lloyd in introducing a bunker recovery mechanism.

“Under the current industry environment and the level of cost involved to an industry that is already very cost-sensitive for survival, shippers and the consumers will need to prepare to shoulder this burden,” the company said.

As explained, the mechanism will take various factors into account, including the different fuel types being used, fuel price fluctuations, ship size and capacity, and vessel utilization levels.

“In sum, we believe that we are taking the right step towards a greener and more transparent direction forward in the industry as we all embrace the IMO 2020 Regulation together,” the company concluded.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Apr 2019 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 1 2 3 4 5

GreenTech in Shipping USA Forum 2019

GreenTech in Shipping USA Forum is an event for Maritime leaders who want to unlock successful business formula of the industry!

read more >

CWC World Gas & Power Series – Brazil & the Americas Summit

CWC World Gas & Power Series: Brazil & the Americas Summit is the perfect meeting place to make contacts…

read more >

FPSO Brazil Congress 2019

Charging ahead with 24 planned orders by 2022, Brazil has once again solidified its status as one of the world’s foremost oil and gas leaders…

read more >

Nor-Shipping 2019

Nor-Shipping’s conference and event programme is tailored to deliver the knowledge, value and networking to help you build your business.

read more >