Germany's Hapag-Lloyd will gradually implement a marine fuel recovery (MFR) mechanism from 1 January 2019 to offset an anticipated $fifth increase in annual costs from the switch to low-sulphur fuel in 2020. An MFR is the most "fair and transparent" method of passing on the cost of the International Maritime Organisation's sulphur cap to polluters, a spokesperson for the container shipping firm said. Hapag-Lloyd has confirmed the MFR formula will combine individual vessel fuel consumption patterns, cargo sizes, sea and port times with fuel oil market prices.
Germany's Hapag-Lloyd will gradually implement a marine fuel recovery (MFR) mechanism from 1 January 2019 to offset an anticipated $1bn increase in annual costs from the switch to low-sulphur fuel in 2020. An MFR is the most "fair and transparent" method of passing on the cost of the International Maritime Organisation's sulphur cap to polluters, a spokesperson for the container shipping firm said. Hapag-Lloyd has confirmed the MFR formula will combine individual vessel fuel consumption patterns, cargo sizes, sea and port times with fuel oil market prices.