Orient Overseas Container Line (OOCL) has said it will be introducing a bunker recovery charge in preparation for the International Maritime Organisation’s (IMO) rules on sulphur emission, due to come into force on January 1 2020.
The move sees the Hong Kong-based container line join the industry’s biggest companies by adjusting its charges response to the upcoming regulations, estimated to cost the industry approximately USD $60 billion.
A report by shipping consulting firm Drewry in October 2018 predicted that surcharges could increase as much as 60% after the 2020.
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In a statement, OOCL said: “In preparation for the surge in this operating cost and in consideration of the continual trend of rising fuel prices in the market, OOCL will be introducing a bunker recovery approach based on a floating bunker formula that will better reflect the changes in the industry environment.
“This approach 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.
“As a responsible and committed member of the international community, OOCL will continue to work closely with our customers and business partners to strive for further improvements in all aspects of our businesses for a greener future in the generations to come.”