Ocean Network Express (ONE), the sixth largest ocean carrier in the world, has announced new surcharge measures as it prepares for the implementation of a sulphur limit in 2020.
According to a statement, ONE is aware of the environmental impact of vessel emissions and welcomes the reduced sulphur regulations mandated by the International Maritime Organization (IMO).
The company has identified that adopting low-sulphur compliant hybrid oil, which contains no more than the 0.5% of sulphur allowed under the International Convention for the Prevention of Pollution from Ships (MARPOL), is the most cost-efficient, short term solution available.
Simon Bennett overviews the IMO greenhouse gas strategy for a sustainable future in a recent Port Technology technical paper
ONE is also considering solutions such as EGCS (Exhaust Gas Cleaning Systems) and using LNG as a fuel, which may be employed in the future.
In order to prepare for the new regulations, the carrier has implemented a new ONE Bunker Surcharge (OBS) that will come into effect from January 1, 2019.
The new OBS will apply on all new contracts made from 2019, while existing contracts will still be subject to the previous BAF mechanism and remain so until the contract expires.
IMO Stands Firm on Sulphur Limit Dates #PTIDaily SEE MORE: https://t.co/6sCrvzRVae @IMOHQ #shipping #environment #sustainability pic.twitter.com/gd1pmwlA5q
— Port Technology (PTI) (@PortTechnology) September 26, 2018
In addition to this, a separate Low Sulphur Fuel regulation has been imposed in Central China as of October 2018, requiring vessels sailing through Yangtze Delta ECA designated areas to ensure all fuels contain 0.5% or less sulphur.
As a consequence, ONE will also introduce a Low Sulphur Fuel surcharge (LSF), of US$15 per TEU, for all China export cargoes travelling via Shanghai, Ningbo and Nanjing in January 2019.
A further statement read: “ONE continues to explore all avenues available to mitigate fuel consumption and fuel associated costs for the benefit of the global environment and the supply chain costs of our valued customers.”