EMEA News
"Vast Majority" of Shippers Will Chose MGO for 2015 ECA Compliance
Most shipping companies will use marine gas oil (MGO) rather than scrubbers or liquefied natural gas (LNG) bunkers when regulations reducing the sulfur limit for ships operating in European Emissions Control Areas (ECAs) go into effect next year, a ShippingWatch survey has found.
The new regulation in the Baltic Sea, the North Sea, and the English Channel takes effect on January 1, 2015.
Despite indications from many in the industry that LNG is an appealing low-cost alternative fuel, the survey found that a "vast majority" of carriers plan to use MGO as an "immediate solution."
Some operators, such as DFDS, have chosen to invest in scrubbers, while others, including Finnlines, are waiting to see what solution makes most sense.
"Our strategy - for the time being – is to study, test and wait," said Finnlines CEO Emanuele Grimaldi.
"As technology advances, it will become easier to judge which solutions are the most adequate to our ships and services.
"We could even opt for changing nothing, as there are already contacts with various fuel producers for purchasing 0,1 percent sulphur products at competitive prices."
Feeder operators who charter their ships are particularly likely to switch to MGO or other low-sulfur fuels because few feeder ship owners are planning to install scrubbers or retrofit the ships to use LNG.
In preparation for the new ECA rules, some in Europe are expanding the supply of low-sulfur fuel, while others push for greater availability of LNG bunkers.
