EMEA News
Ignoring European ECA Rules Could Save Ships $20,000 Per Day
Some shipowners and operators in Europe stand to gain as much as $20,000 a day by ignoring new Emission Control Area (ECA) regulations in the short-term, according to Jack Jordan, a marine fuel reporter with Argus Media.
New sulfur rules, which came into effect January 1, 2015, have limited the sulfur content of marine fuel used in ECAs to no more than 0.10 percent by weight, meaning operators must either choose to use more expensive low-sulfur fuel, or invest in technology that provides an equivalent method of compliance.
But varying financial penalties and lax enforcement regimes across the Union mean that in certain areas companies could save more by just by paying the penalties handed down by port authorities.
"If you're switching from low sulfur fuel oil to gas oil, then you're going to be paying about $250 per tonne more than you used to," said Jordan.
"In most countries... the fine is just a few thousand dollars if you get caught, and for a large vessel, non-compliance for one day of sailing could save you $20,000."
Additional speculations also estimate that only one in a thousand vessels are actually being checked by authorities, he added.
"There are very big financial incentives to carry on burning fuel oil if you think you can get away with it," he said.
It was noted that the same benefits won't translate to the U.S. where enforcement is more strict however, though Europe is expected to catch up as time goes on.
It was previously predicted that there would be "massive non-compliance' in Europe, in large part due to a lack of proper enforcement.
