Shipper warns of higher costs

“While shipping is already the most environmentally friendly mode of transport, the new regulations help to further reduce the impact on the environment and our health,” said Rickmers-Linie CEO Ulrich Ulrichs. “But low sulphur fuels are more expensive and growing demand is widely expected to further increase the costs of these fuels.”

Mr Ulrichs was referring not only to the 0.1% maximum fuel sulphur levels being introduced in the US and Canada ECAs and the the North Sea, English Channel and the Baltic Sea SECAs on 1 January 2015, but also to the upcoming reduction from 3.5% to 0.5% sulphur outside the ECAs. The latter cut is planned for the year 2020, but a 2018 review by IMO might shift the deadline to 2025.

“Rickmers-Linie fully supports the introduction of the new regulations,” said Mr Ulrichs. “Using these fuels during navigation in the ECAs, the content of sulphur and hazardous sulphur dioxides in the exhausts of our vessels will be reduced considerably. However, the new regulations will inevitably mean an increase in bunker costs. So we are in the process of implementing a low sulphur fuel surcharge for quotations valid for shipments arriving to or departing from an ECA on or after 1 January 2015.”

Mr Ulrichs stresses that the effectiveness of the new regulations is tied to powerful enforcement to ensure an industry level playing field and to prevent a weakening of the positive effect on the environment. “We firmly encourage industry players and associations to comply with, and authorities to ensure enforcement of, the new regulations.”