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Lease obligations
 12 Months Ended
Dec. 31, 2020
Disclosure of leases [Abstract]  
Lease obligations Lease obligations:
20202019
Opening lease obligations718,505 652,642 
Additions, net of disposals108,763 168,216 
Interest expense47,871 43,288 
Lease payments(154,727)(145,100)
Effect of movements in exchange rates and other1,822 (541)
Lease obligations at December 31722,234 718,505 
Less: current portion(97,516)(89,820)
Lease obligations - non current portion$624,718 $628,685 

The Company incurs lease payments related to ocean vessels, terminal facilities, rail cars, vehicles and equipment, and office facilities. Leases are entered into and exited in coordination with specific business requirements which includes the assessment of the appropriate durations for the related leased assets.
The following table presents the contractual undiscounted cash flows for lease obligations as at December 31, 2020:
Lease
payments		Interest
component		Lease obligations
2021$142,096$44,580$97,516
2022118,13940,07578,064
2023110,35435,76074,594
2024101,46731,62269,845
202590,87527,37063,505
Thereafter
419,45680,746338,710
$982,387$260,153$722,234

Variable lease payments and short-term and low value leases
Certain leases contain non-lease components, excluded from the right-of-use asset and lease liability, related to operating charges for ocean vessels and terminal facilities. The total expense recognized in cost of sales relating to operating charges for 2020 was $91.8 million (2019 - $83.7 million). Short-term leases are leases with a lease term of twelve months or less while low-value leases comprised of information technology and miscellaneous equipment. Such items recognized within cost of sales in 2020 were $0.3 million (2019 - $0.5 million).

Extension options
Some leases contain extension options exercisable by the Company. Where practicable, the Company seeks to include extension options in new leases to provide operational flexibility. The extension options held are exercisable only by the Company and not by the lessors. The Company assesses, at lease commencement, whether it is reasonably certain to exercise the extension options. The Company reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant change in circumstances within its control. Total potential future lease payments not included in the lease liabilities should the Company exercise these extension options totals $53.4 million (2019 - $70.6 million).
 Lease liabilities recognized (discounted)Potential future lease payments not included in lease liabilities (undiscounted)
Ocean going vessels$472,322 $5,994 
Terminals and tanks194,938 30,161 
Other54,974 17,209 
Total$722,234 $53,364 

Leases not yet commenced
As at December 31, 2020, the Company has entered into lease agreements for which the leases have not yet commenced. Total exposure to undiscounted future cash outflows not reflected in lease liabilities is $550.8 million (2019 - $6.6 million). The leases not yet commenced as at December 31, 2020 related solely to ocean vessels, with the majority comprised of the addition of 8 new dual-fuel ocean going vessels from 2021 to 2023 with 15-year terms, replacing expiring time charter vessels. The leases not yet commenced as at December 31, 2019 related to storage tank agreements now in place.