Sulphur cap prompts Hapag-Lloyd to introduce Marine Fuel Recovery mechanism
MFR formula
The new system will be gradually implemented from January 1, 2019 and will replace all existing fuel-related charges, the company said.
The MFR is based on a formula that combines consumption with market prices for fuel oils and takes into account various parameters including vessel fuel consumption, fuel type and price, sea and port days and the number of containers being shipped. The MFR also takes fuel price fluctuations into account and has been designed to provide a transparent calculation of costs.
Hapag-Lloyd also revealed that it is reviewing other technological options for the reduction of emissions over a small proportion of its fleet. One ship is to be converted to burn LNG and scrubbers are to be tried out on two other vessels during 2019.
In a statement, Hapag-Lloyd referred to estimates that the world’s shipping industry faces an annual bill of up to USD 60 billion to burn sulphur-compliant fuel. The company has calculated that based on a spread in the price of low-sulphur and high-sulphur fuel of $250 per tonne, its own fuel costs will rise by ‘around USD 1 billion in the first years’.
