Hapag-Lloyd to implement Low Sulfur Surcharge
German shipping firm Hapag-Lloyd AG (Hapag-Lloyd) has announced it will implement a Low Sulfur Fuel Charge of $10 per twenty-foot equivalent unit (TEU) for all cargo between Latin America to North America, and North America to Latin America, because they "will have to buy more expensive fuel."
The statement said the charge, which will be effective September 6, 2012, is a result of the North American Emissions Control Area (ECA) coming into effect on August 1, 2012, Ship & Bunker reports.
Ships operating within the ECA, effectively within 200 nautical miles of the U.S. and Canada coastline, must use a marine fuel with a sulfur content not exceeding 1.00% by weight.
"Due to the increased cost Hapag-Lloyd is forced to implement a Low Sulfur Fuel Charge," it said.
Ship & Bunker data for today shows the premium for the ECA compliant fuel can be as much as $250 per metric tonne (pmt) or over 37%.
Hapag-Lloyd reported a loss of €132.4 million ($171.5 million) for Q1 2012 compared with a €22.1 loss ($28.6 million) for the same period in 2011, with bunker costs being amongst the key reasons for the fall in profits.
Container line Mediterranean Shipping Company S.A. (MSC) has also implemented a Low Sulfur Surcharge of $10 per TEU effective August 3, 2012 for all export cargo to all U.S. ports.