EMEA News
ECA "Loophole" May Provide a Competitive Advantage for Some UK Ports
Ships destined for the UK could save money by using ports on the Welsh coast due to a "loophole" which means the Irish Sea is omitted from Emission Control Area (ECA) rules, local media reports.
While Britain's south and east coasts are included in the European ECA, the remainder of the coastline falls under the global sulfur cap, currently 3.5 percent, leaving some to suggest the ship owners and operators should be encouraged to divert routes to ports in Wales.
"In 2020, this competitive edge will largely be lost when the sulfur content of fuel for ships operating on the Irish Sea is further reduced," said Paddy Walsh, UK Ports manager for Irish Ferries, referring to the anticipated introduction of a global 0.5 percent sulfur cap in 2020.
Despite strong backing by the European Union (EU), its implementation could still be subject to a fuel availability review by the International Maritime Organisation (IMO) in 2018 and its introduction delayed until 2025.
"From January 1, 2015, all ships operating within the SECA have to use fuel with a sulfur content of 0.10 percent," said Walsh.
"This represents significant additional costs in fuel.
"The SECA encompasses the North Sea and the English Channel but excludes the Irish Sea, where ships can continue to operate using heavy fuel oil, until [the new global cap comes into force]."
Commenting on the possibility of cargo ships being diverted to Welsh ports, Alec Don, CEO at the Port of Milford Haven, says he has not yet seen any evidence of such activity yet.
"The regulations affecting shipping lines operating within the SECA pose a challenge for ship operators," he said.
"However, fuel cost is just one of many factors to consider, and setting up new shipping routes isn't always straightforward. That said, we do talk to the industry about it and believe there is some potential for RoRo cargoes to re-route through Welsh ports.
"It is definitely an opportunity, and in theory it should encourage people to consider using ports like Pembroke Port as opposed to always choosing the shortest route."
Chris McRae, of the Freight Transport Association, suggests that low bunker prices since the new ECA rules were implemented have affected the possible savings shipping companies could have gained by utilising ports on Britain's west coast.
"It's a temporary masking of what's possibly a longer-term issue," he said. "The systemic changes are masked by the overall low price of fuel.
"In the medium term, use of west-coast feeders – as opposed to east coast feeders – is likely to increase."
In May, it was reported that 94 percent of spot checked vessels operating in European waters were found by the European Maritime Safety Agency (EMSA) to be compliant with new sulfur regulations for marine fuel.
