Specifically, the company comments that being in line with IMO 2020 results to higher costs for the whole industry; Thus, they launched the transition charge to assist shipping stakeholders follow an easier transitional experience.
The ITC applies to freight of all kinds cargo and spot business with a validity up to 3 months, whereas tender business will not be affected by the ITC.
Rolf Habben Jansen, Chief Executive Officer of Hapag-Lloyd stated that
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.
In the meantime, the company published in April its Sustainability Report, according to which is on track to reduce its CO2 emissions per TEU-kilometre by 20% by 2020, in comparison to the base year 2016.