EMEA News
Low-Sulfur Rules will Cost £300 Million Per Year, UK Shippers Say
The extra costs of complying with new emissions rules that take effect at the start of 2015 will come to £300 million ($510 million) per year, UK shipping industry players warned in a letter to The Telegraph.
The 19 signers, including UK Chamber of Shipping President Marcus Bowman and the heads of companies including Carnival UK, CMA-CGM, and Brittany Ferries, argue that new technology that could save them from switching to expensive low-sulfur fuel "is only just ready" and "could take two years to fit to all our ships."
The companies are seeking flexibility in the European Union (EU)'s enforcement of the rules during a transition period.
The signers warn that switching to low-sulfur fuel could cost as many as 2,000 British jobs and result in cargo switching to road routes, leading to more carbon dioxide (CO2) emissions.
"We urge the Government to take action to prevent these damaging consequences by insisting that the EU allow pragmatic transitional arrangements, and support measures designed to lessen the economic impact on customers and operators," the letter says.
UK transport minister Stephen Hammond said this week that he was disappointed that the industry says it cannot adapt to the new rules by next year, given that the UK Chamber of Shipping agreed to the timetable in 2008.
