Friday, September 12, 2014

Rickmers Linie expects higher fuel costs with stricter sulfur regulations

Rickmers-Linie announced its support for stricter sulfur regulations in 2015 while noting that their implementation will inevitably lead to a hike in fuel costs, triggering a low-sulfur fuel surcharge on shipments.

"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," says CEO Ulrich Ulrichs. "But low sulfur fuels are more expensive and growing demand is widely expected to further increase the costs of these fuels."

The new rules go into force January 1, 2015 in emission control areas (ECA) in the U.S. and Canada as well as the North Sea, English Channel and the Baltic Sea. The maximum content of sulfur allowed in marine fuels used in the ECAs will be 0.1 percent, the statement said, compared to the current 1.0 percent.

In non-ECA areas, sulfur content in marine fuels must be reduced from the current 3.5 percent to 0.5 percent by 2020. As the result of a review by the IMO in 2018, the deadline might be postponed to 2025.

"The new regulations will inevitably mean an increase in bunker costs," said Ulrichs. "So we are in the process of implementing a low sulfur fuel surcharge for quotations valid for shipments arriving to or departing from an ECA on or after 1 January 2015."

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