HONG KONG's Orient Overseas Container Line (OOCL) has announced it will introduce a bunker recovery scheme based on a floating bunker formula that will better reflect the changes in the industry environment.
'We expect the additional cost impact to easily fall well above half a billion dollars,' said OOCL.
'This will ensure all ocean-going vessels in our fleets will be able to meet the International Maritime Organisation's (IMO) new sulphur cap regulation by January 2020,' said a company statement.
'The level of cost involved to an industry that is already very cost-sensitive for survival, shippers will need to prepare to shoulder this burden,' the statement said.
'By looking into the expected bunker consumption and the projected price from switching to the compliant fuel which may become increasingly expensive due to tight supply, we expect the additional cost impact to easily fall well above half a billion dollars.
'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,' said the statement.
'We expect the additional cost impact to easily fall well above half a billion dollars,' said OOCL.
'This will ensure all ocean-going vessels in our fleets will be able to meet the International Maritime Organisation's (IMO) new sulphur cap regulation by January 2020,' said a company statement.
'The level of cost involved to an industry that is already very cost-sensitive for survival, shippers will need to prepare to shoulder this burden,' the statement said.
'By looking into the expected bunker consumption and the projected price from switching to the compliant fuel which may become increasingly expensive due to tight supply, we expect the additional cost impact to easily fall well above half a billion dollars.
'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,' said the statement.