EMEA News
ECAs Will Divide Companies into Weaker and Stronger Players, Says Finnlines CEO
According to Finnlines CEO Emanuele Grimaldi, upcoming Emission Control Area (ECA) regulations will be an "opportunity" that will separate companies into two tiers, reports ShippingWatch.
Companies who are doing well financially and who directly own newer, large ships will have higher chances of coming out in the "competitive upper tier," as they have the option of retrofitting ships to comply with new sulfur rules, said Grimaldi.
But operators with older or chartered fleets, who are unable to afford ship modifications, will have to convert to marine gas oil (MGO), which complies with sulfur limits but is substantially more expensive.
"Fuel consumption has become more critical than ever in the sulphur emissions control areas, where we ply the bulk of our trade," he said.
"That's why more fuel efficient operators can compete better in this market."
Beginning next year, sulfur content in marine fuel used in ECAs will be limited to 0.10 percent by weight, which has sent companies scrambling to adopt compliance measures.
Finnlines has reportedly spent the last year retrofitting its ferries to the tune of €65 million ($80.9 million), which includes installing scrubbers on 10 RoRo ships.
"Thanks to these investments, fuel consumption can be decreased by 2000/2500 tons per each vessel per year, thereby reducing the impact on the environment as well," said Grimaldi.
Despite the ship upgrades, customers will still experience surcharges, though Grimaldi said that Finnlines' charges would be lower than the market average.
Six more ships are also slated for scrubber installations and propulsion system retrofits, with modifications to be completed by the beginning of next year.
