Hapag Lloyd upbeat for year ahead. File Image / Pixabay
Box ship operator Hapag-Lloyd has said that the cost of switching to low sulfur fuels will be EUR 1.1-1.2 billion ($1.3bn) annually.
The majority of the firm's fleet will use IMO2020-compliant fuel. Ten of its 235 ships with emissions abatement or scrubber technology with one ship to be converted to run on liquefied natural gas.
The cost of IMO2020 compliance was given by its chief executive, Rolf Habben Jansen, when speaking about the company's first quarter results.
But higher quarterly earnings prompted the executive to take an upbeat view of the year ahead.
From the start of next year, the global fleet is restricted to using bunker with sulfur content capped at 0.5% unless ships have scrubber technology installed in which case they can continue to burn high sulfur fuel oil.
Shipping chief executives recently called for vessel speed limits to curb bunker fuel use, with Hapag-Lloyd one of the majority of box carriers not backing the proposal.