The Hamburg-headquartered shipping company will implement its marine fuel recovery (MFR) mechanism from 1 January 2019; will also convert one of its ships to run on LNG and equip a further two with exhaust gas cleaning systems (EGCS).
To be gradually implemented from 1 January 2019, Hapag-Lloyd’s bunker adjustment factor (BAF) is based on a formula that combines consumption with market prices for fuel oils.
It takes into account various parameters, such as the vessel consumption per day, fuel type and price (specific for HSFO, LSFO 0.50% and LSFO 0.10%), sea and port days, and carried twenty-foot equivalent unit (TEU). According to Hapag-Lloyd, these parameters derive from a typical representative service in the market on a specific trade.
The MFR is also said to take price fluctuations better into account, as it comes along with an improved coverage of upward and downward developments of market price changes for fuel oil.
Overall, Hapag-Lloyd says the bunker adjustment factor (BAF) aims for ‘transparent calculation of costs’.
Nevertheless, it is likely to divide opinion within the shipping industry. Similar announcements from several high-profile shipping lines in recent weeks relating to 2020-realted bunker surcharges have raised questions over transparency and drawn stinging criticism from industry associations.
Furthermore, the shipping company says it is thoroughly analysing other technological options for the reduction of emissions that might be able to cover a small share of a fleet. It confirmed that it will begin trials with LNG and scrubbers in 2019.
‘We embrace the level playing field and environmental improvements resulting from a stricter regulation, but it is obvious that this is not for free and will create additional costs. This will be mainly reflected in the fuel bills for low-sulphur fuel oil, as there is no realistic alternative for the industry remaining compliant by 2020,’ said Rolf Habben Jansen, Chief Executive Officer of Hapag-Lloyd.
‘With our MFR, we have developed a system for our customers that we think is fair, as it allows for a causal, transparent an easy-to-understand calculation of fuel costs,’ added Jansen.