ZIM to implement Low Sulfur Fuel Charge
Israeli cargo shipping company ZIM Integrated Shipping Ltd (ZIM) said Monday that effective September 15, 2012 it will implement a Low Sulfur Fuel Charge of USD $20 per twenty-foot equivalent unit (TEU) for trade between North Europe/Mediterranean and all North American coasts in both directions, Ship & Bunker reports.
"The charge is applied in order to cover the increased fuel costs, incurred due to the decision by the International Maritime Organization (IMO) to apply stricter controls on emissions for ships sailing off the coasts of Canada and the United States," it said.
The North American Emissions Control Area (ECA) came into effect on August 1, 2012, meaning all ships operating within 200 nautical miles of the U.S. and Canada coastline must use a more expensive marine fuel with a sulfur content not exceeding 1.00% by weight.
ZIM is not alone in applying the charge because of the ECA, with German shipping firm Hapag-Lloyd AG (Hapag-Lloyd) saying last week the ECA had "forced" the firm to implement a Low Sulfur Fuel Charge.
ZIM has been struggling to make a profit of late, earlier this year posting fourth-quarter losses of $96 million which followed Q3 losses of $66 million, taking its total losses for 2011 to $397 million.