IMO 2020: Transparency essential for shipper-carrier agreement over fuel surcharges

John Hextall, chief executive officer of De Well Group, introduced one key issue of concern to the industry by suggesting $30bn as the price of implementing IMO 2020, while moderator Mark Szakonyi, JOC executive editor, talked up "industry mistrust" over recouping costs.

Rolf Habben Jansen, chief executive of Hapag-Lloyd, acknowledged that the new IMO regulations will make the industry "green" but he said it will come "with a cost" He estimated a cost of $60bn for the industry as a whole, $15bn for container shipping and $1bn for his own firm. 

Mr Habben Jansen estimated that the changeover will cost his firm some $75m-$100m in the fourth quarter of this year in the run-up to the IMO's January 1, 2020 deadline for compliance. He estimated that the additional costs would rise by about $250 per ton of fuel, based on an assumed differential between high- and low-sulphur fuel oil.

 
Source: Lloyd’s List