Ocean Network Express (ONE) sees adoption of low-sulphur compliant hybrid oil as the most realistic and cost-efficient, but short-term solution, for becoming compliant with the 2020 sulphur cap.

“We are still also carefully considering other possible solutions such as exhaust gas cleaning systems and using liquefied natural gas (LNG) as a fuel, which may be employed in the future,” ONE said.

The company plans to recover rising fuel costs by introducing a bunker surcharge in all new contracts that commence on January 2019.

ONE said that the existing contracts will still be subject to the previous BAF mechanism and remain so until the contract expires.

• The ONE Bunker Surcharge (OBS) = Fuel Price x Trade wise Loading Factor x Trade imbalance

The newly launched carrier expects its teething problems to have a USD 400 million impact to the company’s bottom line for the fiscal year of 2018.

The teething problems, which mostly related to booking reception and documentation operations, have had a major impact on the company’s business performance since launching in April 2018 as a joint venture between K Line, MOL and NYK Line.

For the full fiscal year, the company anticipates to book a loss of USD 600 million, a major downgrade from the expected profit of USD 110 million.