UK Shipping Committee Raises ECA Concerns

The Humber Bridge located in the UK’s busiest trading route

A UK Shipping Committee representing players on the country's busiest trading route said it has written to the government saying the introduction of a 0.1% low sulfur fuel requirement in 2015 "could have a serious impact on both the local, regional, and national economy."

"There was no phased introduction and no level playing field - there will be issues as a result," Humber Chamber of Commerce's Shipping Committee Chairman Graham Cross told local media today.

Fuel costs were estimated to rise by up to 87% for ships operating in Emission Control Areas (ECAs) it said, leading to "intolerable" costs for ship operators and exporters.

Cross added that while it accepted the environmental impact from high sulfur fuel use needs to be addressed, businesses were concerned the proposals would come into action too quickly.

More Discussions

"The introduction is proposed for 2015. This does not provide enough time for shipping companies to make the appropriate and necessary adjustments to their vessels," the shipping committee said.

"There needs to be more discussions and a possible phased introduction in conjunction with dialogue from the industries that are going to be affected and engagement with the maritime industry to introduce it in the correct way," commented Cross.

The statement said it saw increased costs not only because the fuel was more expensive, but also in repair costs due to expected degradation of pipes and seals, additional costs of additives to limit the degradation caused by the fuel, and the need for scrubbers.

It said those increased costs would result in reduced shipping activity and less tourists coming through the ports, which in turn will lead to job losses.

Cross also said it anticipated the legislation would result in a "significant modal shift" away from sea transport to transport by road, which would result in increased pollution, increases in congestion on the region's roads, and potentially lead to increased road traffic accidents.

Cross also said concerns over whether there would be enough 0.1% sulfur fuel to meet demand were "already apparent."

The legislation was passed in May 2012 and means by 2015 the maximum sulfur content of fuels for vessels operating inside the ECA will drop from the current 1% to 0.1%.

The EU have said that governments may provide investment support to shipping firms to avoid damaging the sector's competitiveness, providing the support complies with EU state aid rules.