Fiercer environmental legislations as of 2015 depress shipping

By Peter Pospiech at December 10, 2013 04:00
Filed Under: Fuels & Lubes, General, New Technology, Scrubbers

Trade fears cost increase – Shipping owner under considerable pressure

Shipping traffic on North- and Baltic Sea becomes notable more environmentally friendly as of 2015 – and could just generate significant cost increases also in other segments.
The allowed amount of ships sulfur emission drops to a maximum of one tenth of the previous amount. In addition also less nitrogen oxides and particulate matters are allowed. This is of the benefit to the environment, because the maritime traffic is a huge burden for the sensitive marine ecosystem and the air quality along the coast line. But due to the more stringent regulations a series of negative consequences will follow in other areas.
About 4.000 vessels are in regular service on the North- and Baltic Sea (SECA areas). Shipping owners have the possibility to fulfil these regulations by using expensive sulfur free fuels or they install afterwards scrubber systems in their ships.

Container vessels with black trail of smoke - expensive scrubber can provide a remedy

14 month before the relevant date the following can be seen: up to a small number the most will decide to use sulfur free fuel. Unifeeder Manager Timm Niebergall says: “The most of the owner cannot afford to install the expensive scrubber systems”. Such a system cost at a minimum around EUR 1,5 million. In addition, after years of the crisis owners do not get bank loans for such investments. On top of this: there are too many feeder ships in this particular area.
For the large vessels, which are running between Europe and Asia, exist no adequate tradedable desulfurization technology, which means that for new buildings scrubber systems will be installed.
That means, that year after next, the European market for Diesel fuel will increase. Cruise ships and freighter on North- and Baltic Sea will not any longer use heavy fuel because of the poor quality. They need similar fuels like trucks, aircrafts, oil heating systems and Diesel cars. The result is finally: a drastically price increase per ton. A company speaker of Hapag Lloyd said recently: “The low sulfur limit values end definitely in higher prices which we will forward to our customers”.
But the mineral industry in Germany play down the issue: “We have already invested in the new technology to change heavy fuel into better and environmentally friendly products”.


We certainly will watch the market and inform our reader

Image: PPM News Service Archiv

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