JBC Energy: Low Oil Price Will Boost European ECA Compliance

by Ship & Bunker News Team
Tuesday January 20, 2015

Compliance with 2015 European Emissions Control Area (ECA) rules is set to be higher than previously anticipated due to current low oil prices, Platts reports.

Since the premium paid for compliant fuels has dropped in recent months, the likelihood of shippers switching from fuel oil has increased, said Alexander Poegl, head of business development for JBC Energy.

The comments were delivered to an audience at Monday's Platts middle distillates conference in Antwerp, Belgium.

Ship & Bunker data Monday showed that the premium commanded for marine gasoil (MGO) over IFO380 at Rotterdam has fallen from $293 per tonne as at the beginning of August 2014 to $226 per tonne.

The absolute cost of MGO has almost halved in the same period to $472 per tonne.

Since January 1, 2015, ships are required to burn fuels with a sulfur content of no more than 0.10 percent by weight while inside the European ECA comprising the Baltic and North Seas and the English Channel.

In recent months European shipping industry figures have criticised enforcement of European ECA rules suggesting the deterrent for non-compliance is too low to encourage all shippers to comply, and deliberate non-compliance could actually save money.

In October the Trident Alliance, which aims to encourage a level playing field with regards ECA compliance, announced that it had so far attracted members representing 7 percent of global bunker consumption.