East Coast Upbeat on ECA Cruise Industry Impact

by Ship & Bunker News Team
Friday August 3, 2012

Maine's port authority has reacted positively to the impact that the new North American Emissions Control Area (ECA) could have on the cruise industry, according to comments made on the Main Public Broadcasting Network.

The ECA, which came into effect on August 1, 2012, has been widely reported to result in an increase in costs for ship operators, and on July 31, 2012 the maximum 1.00% sulfur ECA compliant fuel vessels must now use within 200 nautical miles of the coast had a premium of $129 or 20.7% over the high sulfur fuel used outside the ECA.

"It's going to make it more expensive for ships to operate within that 200 mile limit," commented John Henshaw, who heads the port authority.

As cruise ships do most of their cruising within this zone close to shore "they're going to need a lot of low-sulfur fuel," he added.

State and local tourism officials and Maine's port authority were said to have made attracting more cruise ships to the port a top priority and Charlie Phippen, Harbor Master in Bar Harbor where 119 cruise ships are scheduled to visit this year, said, "I've got 2013, quite a full line-up and 2014 is starting to accumulate."

Concerns have been raised about the availability of ECA compliant fuel, with Henshaw saying "They're a little more scarce at this point. But I think, obviously, the market is going to meet with the demand eventually."

Alaska, another state with an investment in the cruise industry, has been less positive about the ECA.

In July the state filed a lawsuit seeking relief from the enforcement of the ECA saying it "will irreparably injure the State and Alaska's citizens and economy," and for the cruise ship industry, the ECA would mean 585,000 fewer visitors to Alaska, resulting in $150 million less income for Alaska workers and $180 million less in direct spending by Alaska tourists.