Hong Kong’s Orient Overseas Container Line (OOCL), now part of Cosco, has outlined its sulphur cap plans, which will see it pursue a low sulphur fuel strategy rather than opting for scrubbers or LNG-fuelled ships.
Like its peers Hapag-Lloyd, Maersk, CMA CGM and MSC, OOCL has also warned clients that they will help pay for its transition to lower sulphur fuel.
OOCL said it will begin to use low sulphur fuel across its entire fleet during the second half of 2019, something it anticipates will cost more than $500m in higher bunker costs.
“Under the current industry environment and the level of cost involved to an industry that is already very cost-sensitive for survival, shippers and the consumers will need to prepare to shoulder this burden,” OOCL warned in a release issued on Friday.
OOCL said it will be introducing a bunker recovery approach based on a floating bunker formula that will take various factors into account, including the different fuel types being used, fuel price fluctuations, ship size and capacity, and vessel utilization levels.