Shipping sulphur targets could prove harmful

The report, which is the first of its kind to examine the full impact of hitting sulphur targets, revealed that if targets are hit, there will be an increase of 2.8p per litre for the cost of road diesel and a significant increase in the cost of passenger and container route ticket prices, while carbon emissions and road congestion will also increase.

The UK Chamber of Shipping says that shipping companies are left with three options: to use low sulphur fuel, fit a sulphur scrubber to their ships or use LNG as fuel.

But, for those that cannot yet use LNG or are not willing to invest, the impact of low sulphur fuel cost is huge. Operators of sea route around the UK would need to increase tickets prices by up to 20% for passengers and up to 29% for freight in order to cope.

This could threaten the viability of some routes, forcing them to reduce or shut down altogether and resulting in the loss of more than 2,000 jobs.

David Balston, director of safety and environment, UK Chamber of Shipping, said: “We are particularly concerned that many routes will become non viable and for those vessels operating on them we seek transitional arrangements, including very tight time limited exemptions to allow technology to catch up and provide a realistic alternative. We must protect our maritime jobs and the environment – this report shows these regulations do neither.”

He added: “The wider impact is hard to quantify – but these regulations will make the UK less competitive, making us a less attractive country for international investors – at the worst possible time for the UK economy.”