German container line Hapag-Lloyd has explained its formula for recovering an estimated $1bn in extra fuel costs due to the IMO's new 2020 rules.
Its marine fuel recovery (MFR) mechanism will be "gradually implemented" from 1 January next year, ahead of the low-sulphur requirements coming into force in 2020.
CEO Rolf Habben Jansen said: "We embrace the level playing field and environmental improvements resulting from a stricter regulation, but it is obvious that this is not for free and will create additional costs.
