Shipping major introduces IMO2020 transition charge for short-term contracts

Shipping major Hapag-Lloyd will on 1 December introduce an IMO2020 Transition Charge (ITC) for short-term contracts.
The move is designed to mitigate fuel price volatility and transitional operational expenses resulting from the introduction of the fuel sulphur cap on January 1, according to the line.
“Switching from high-sulphur fuels to the new low-sulphur fuel will inevitably result in higher fuel prices in the short term. Volatility is also expected to increase, particularly during the transition period. Given these circumstances, we will implement the ITC to cope with the additional costs as well as to have a sustainable and transparent method of pricing our services for our customers,” explains Rolf Habben Jansen, chief executive officer of Hapag-Lloyd.
The ITC applies to freight of all kinds cargo and spot business with a validity up to three months. Tender business will not be affected by the ITC.