FRENCH container line CMA CGM says the 0.5 per cent sulphur cap in 2020 will cost an additional average of US$160 per TEU, and will be charged to customers through fuel charges.
Although CMA CGM has led the way with the order for nine 22,000-TEU LNG-powered newbuilds it plans to primarily comply with the cap through the use of low sulphur fuels. It added that it would be ordering scrubbers for 'several ships'.
Based on current conditions the world's third largest container line said that it would result in additional costs of $160 per TEU on average. Senior vice president Commercial Agencies Network, Mathieu Friedberg, said: 'The implementation of this new regulation, which represents a major environmental advance for our sector, will affect all players in the shipping industry. In line with its commitments, the Group will comply with the regulation issued by the IMO as from January 1, 2020. In this context, we will inevitably have to review our sales policy regarding fuel surcharges.'
The additional costs would be passed on to customers through the application or adjustment to fuel surcharges on trade-by-trade basis.
It looks likely most lines will try and pass on the additional cost to customers and senior officials from Ocean Network Express, Orient Overseas Container Line (OOCL) and APL, a unit of CMA CGM, said shippers would have to pay, reports Seatrade Maritime News of Colchester, UK.
Although CMA CGM has led the way with the order for nine 22,000-TEU LNG-powered newbuilds it plans to primarily comply with the cap through the use of low sulphur fuels. It added that it would be ordering scrubbers for 'several ships'.
Based on current conditions the world's third largest container line said that it would result in additional costs of $160 per TEU on average. Senior vice president Commercial Agencies Network, Mathieu Friedberg, said: 'The implementation of this new regulation, which represents a major environmental advance for our sector, will affect all players in the shipping industry. In line with its commitments, the Group will comply with the regulation issued by the IMO as from January 1, 2020. In this context, we will inevitably have to review our sales policy regarding fuel surcharges.'
The additional costs would be passed on to customers through the application or adjustment to fuel surcharges on trade-by-trade basis.
It looks likely most lines will try and pass on the additional cost to customers and senior officials from Ocean Network Express, Orient Overseas Container Line (OOCL) and APL, a unit of CMA CGM, said shippers would have to pay, reports Seatrade Maritime News of Colchester, UK.