Hapag-Lloyd Expects USD 1 Billion in Extra Fuel Costs in 2020

Hapag-Lloyd

Hapag-Lloyd is facing around USD 1 billion of extra fuel costs stemming from the new sulphur regulations.

Speaking at a TradeWinds Shipowners Forum, Rolf Habben Jansen, CEO of Hapag-Lloyd, said that the fuel costs will rise significantly due to the enforcement of the 2020 sulphur cap.

“We have a real problem in our hands, and we need to figure out what are we going to do about it,” Jansen said.

Jansen estimated that there will a small percentage of ships in the global fleet with installed scrubbers on board by 2020.

As for the LNG, Jansen said the company was exploring the potential of retrofitting some of the boxships acquired through the merger with United Arab Shipping Company. “If the first project proves to be successful, we may convert the other 16 vessels to LNG as well,” Jansen explained.

LEAVE A COMMENT

×

Comments are closed.