EMEA News
North Sea Bunker Costs "Becoming Intolerable"
As ship operators face rising fuel expenses due to new emissions rules, the Hull and Humber (UK) Chamber of Commerce says costs in the North Sea are "becoming intolerable," local newspaper the Grimsby Telegraph reports.
Worries about the impact of the new cap on sulfur emissions in European Emissions Control Areas (ECAs) include the fear that shipping operators could withdraw routes from ports including Immingham, UK, potentially resulting in the loss of jobs and tourism.
"It is a cut-throat market with very inadequate net margins," said Jens Holger Nielsen, chief executive of Rotterdam-based Samskip.
"These margins do not allow for reinvestment in assets.
"This will shut transport routes and companies across Europe."
UK officials have been debating issues around the new sulfur rules, which take effect at the start of next year, with the UK Chamber of Shipping and transport minister Stephen Hammond debating the possibility of adding flexibility to the enforcement of the new rules during a transition period.
