OOCL announces bunker recovery surcharge to cover IMO 2020 compliance

OOCL plans to begin the switch to low-sulphur fuel for its fleet of around 100 container vessels during the 2nd half of next year, in readiness for compliance with IMO2020. It estimated the extra cost could be more than “half a billion dollars”.
The current price spread between heavy fuel oil (HFO) and low-sulphur fuel oil (LSFO) is around $230 per ton. OOCL said shippers and the consumers will need to prepare to shoulder this burden, and it would be introducing a bunker recovery charge.

This follows in the wake of Maersk, Hapag-Lloyd and CMA CGM, although those carriers have proposed a 1 January 2019 start date. Maersk has estimated the cost of compliance with IMO2020 at over $2bn for its 700-ship fleet, while Hapag-Lloyd expects for its 220 vessels to be in excess of $1bn.

(The Loadstar)