UK Chamber of Shipping: Ferry Companies At Risk from "Cack-Handed Implementation" of ECA Rules

CEO Guy Platten has called for a "root and branch" review of the competitiveness of British shipping.

UK Chamber of Shipping CEO Guy Platten on Tuesday criticised the implementation of European sulfur regulations, saying it has put the business of many ferry operators at risk.

"The past few years have seen unprecedented challenges in global markets as well as local economies, and too many ferry operators are on a knife edge," said Platten, who was speaking in Belfast at the September UK branch conference of trade union Nautilus International.

"The cack-handed implementation of new sulfur regulations has seen the viability of too many routes called into question."

Platten also called for British shipowners and seafaring unions to work closely together and lobby the government for a "root and branch" review of the competitiveness of British shipping, arguing there is insufficient investment in new tonnage and there should be a concerted drive to grow UK ownership.

"We must continue to lobby for increases in the Support for Maritime Training,’ Platten added.

"It stands to reason that the ferry industry will only grow with a constant supply of skilled seafarers."

New Rules

Vessels operating within Emissions Control Areas (ECAs) currently must use a marine fuel with a sulfur content not exceeding 1.00 percent by weight.

From January 1, 2015 that limit drops to 0.10 percent, meaning those without an equivalent method of compliance will have to switch to a more expensive compliant fuel to meet the requirement.

In June the UK Chamber of Shipping said that the extra cost of compliance will amount to £300 million ($510 million) per year.

The group also argues that technology allowing such costs to be avoided by having an equivalent method of compliance is only now becoming available.

This year a number of ferry operators have closed routes citing ECA cost compliance, including that of Danish carrier DFDS' service between Harwich, England and Esbjerg, Denmark.

Other operators, however, have been more optimistic over the changes and in August, Finnlines Oyj (Finnlines) said its "young, energy-efficient fleet" was ready to compete under the new rules, having spent more than €1 billion ($1.32 billion) to modernise its fleet over the past 10 years.

The topic is to be discussed at the annual conference of global ferry shipping association Interferry which takes place next week in Vancouver, Canada.