Slide 1: For greener shipping
€€ Hapag-Lloyd For greener shipping
Slide 2: IMO2020 in short
IMO2020 in short New IMO2020 regulation will come into force as of 1 January 2020 IMO Initiative IMO2020 Max. 0.5% is the first in a sulphur content The International Maritime Organization series of steps by All vessels will be (IMO) has introduced new regulations to the IMO to reduce required to us
Slide 3: IMO2020 – Effects for the industry and for Hapag-Lloyd
1 IMO2020 – Effects for the industry and for Hapag-Lloyd 2 Hapag-Lloyd embraces the new regulation 3 Q&A
Slide 4: New Low Sulphur Fuel regulation as of 2020
New Low Sulphur Fuel regulation as of 2020 The shipping industry is changing The IMO has introduced a new marine fuel regulation, which limit the sulphur emissions caused by marine fuels to 0.5 percent sulphur as of January 1, 2020 This is biggest shake-up of global shipping regulation in years
Slide 5: As of January 1, 2020 all ships required to use 0.5% sulphur fuel
As of January 1, 2020 all ships will be required to use fuel with 0.5% sulphur content or less on all of the world’s oceans Stricter 0.1% sulphur regulations will remain in the emission control areas in Europe and North America 0.1% sulphur limit 0.5% sulphur limit 55
Slide 6: Financial impact of IMO2020 for the shipping industry
Financial impact of IMO2020 for the shipping industry Complying with the new low sulphur regulation will make the industry significantly greener, but compliance will have a significant cost impact on the industry, Hapag-Lloyd, and our customers To comply with the regulation, the industry will have
Slide 7: Industry has three promising options for ensuring compliance
Industry has three promising options for ensuring compliance However, the majority of all vessels in the shipping industry are expected to be operated with low sulphur fuel by 2020. This is the key solution for the shipping industry and Hapag-Lloyd to remain compliant. Furthermore, it is the most en
Slide 8: Hapag-Lloyd embraces the new regulation
1 IMO2020 – Effects for the industry and for Hapag-Lloyd 2 Hapag-Lloyd embraces the new regulation 3 Q&A
Slide 9: Hapag-Lloyd welcomes the new regulation
Hapag-Lloyd welcomes the new regulation Hapag-Lloyd fully supports the new regulation and is delighted that the industry has taken a turn toward a greener future We are expecting that new fuels will be on the market in sufficient amounts by January 2020 Low sulphur fuel is the key solution for H
Slide 10: Hapag-Lloyd has planned trials to determine the best mix of measures
Hapag-Lloyd has planned trials to determine the best mix of measures for our fleet, customers and the environment Hapag-Lloyd will test two ships with EGCS systems next year and operate another ship with LNG. If these tests are successful, we will convert more ships if necessary. Though we believe
Slide 11: Hapag-Lloyd is introducing a Marine Fuel Recovery mechanism
Hapag-Lloyd is introducing a Marine Fuel Recovery mechanism Hapag-Lloyd is simplifying its rate structure and will replace all existing fuel charges with a new Marine Fuel Recovery (MFR) mechanism Marine Fuel Recovery Mechanism will be gradually implemented from 1 January 2019 It is causal, tran
Slide 12: The MFR mechanism is based on a set of variables and average market data
Causal, transparent and easy-to-understand: The MFR mechanism is based on a set of variables and average market data The MFR is based on market data and derived out of averages for Market Class Vessels Fuel consumption (per tonne) Carried TEU Based on Market Class Vessels, representing a typical s
Slide 13: MFR samples for standard dry containers at different fuel prices
MFR samples for standard dry containers at different fuel prices for selected trades Marine Fuel Recovery (MFR) for different fuel prices per tonne* Trade USD 400 USD 525 USD 650 East Asia – North Europe 196 242 288 East Asia – North America East Coast 239 295 350 North Europe – North America East C
Slide 14: For a greener future
For a greener future IMO2020 will make the shipping industry significantly greener, and Hapag-Lloyd welcomes this development. However, the IMO2020 sulphur regulation is just the beginning as the IMO has announced a vision to be emission-free by 2100. Compliance will have its challenges and will hav
Slide 15: Q&A
1 IMO2020 – Effects for the industry and for Hapag-Lloyd 2 Hapag-Lloyd embraces the new regulation 3 Q&A
Slide 16: Q&A – About IMO2020
Q&A – About IMO2020 What is IMO2020? IMO2020 concerns the International Maritime Organization (IMO) regulation on the use of low-sulphur fuel that will enter into force on 1 January 2020. To date, ships have been able to use fuel with a sulphur content of up to 3.5 percent. Beginning in 2020, this s
Slide 17: Q&A – Potential solutions
Q&A – Potential solutions Which potential solutions are available for complying with the IMO2020 requirements? Generally speaking, for large container vessels, there are three options that are promising for implementing the new regulation: converting to more expensive low-sulphur fuel oil (LSFO 0.5
Slide 18: Q&A – Potential solutions
Q&A – Potential solutions Does Hapag-Lloyd have a preference? This new regulation will significantly improve the ecological footprint of the shipping industry, and the majority of all vessels are expected to be operated with low-sulphur fuel oil by 2020. Using low-sulphur fuel oil will be the key so
Slide 19: Q&A – Hapag-Lloyd’s strategy
Q&A – Hapag-Lloyd’s strategy What is Hapag-Lloyd’s strategy regarding the new ceiling for sulphur content in fuel that will enter into force in 2020? We will probably need a mix of the three solutions: switching to sulphur-reduced fuel oil (LSFO 0.5%), converting to LNG, and installing exhaust gas c
Slide 20: Q&A – Hapag-Lloyd’s strategy
Q&A – Hapag-Lloyd’s strategy When will you have a final strategy for your entire fleet? Using low-sulphur fuel oil will be the key solution for the shipping industry and Hapag-Lloyd to remain compliant. However, we are currently evaluating all realistic options for our future marine fuel strategy. T
Slide 21: Thank you
€€ Hapag-Lloyd Thank you
Slide 22: Disclaimer
DISCLAIMER STRICTLY CONFIDENTIAL This presentation is provided to you on a confidential basis. Delivery of this information to any other person, the use of any third-party data or any reproduction of this information, in whole or in part, without the prior written consent of Hapag-Lloyd is prohibite