Industry Players Seek Government Compensation for Emission Rules

by Ship & Bunker News Team
Tuesday June 17, 2014

Industry players including Danish shipping company DFDS are calling for the European Union (EU) to reimburse firms for some of the costs of complying with new emissions rules, UK newspaper the Daily Mail reports.

"This will have a major impact on the industry," said Senior Vice President Carsten Jensen.

"Traditionally, you would expect companies to be helped with the cost of meeting these targets."

Jensen said DFDS has already invested £100 million ($170 million) in new technology to help its fleets comply with the new rules on sulfur emissions that take effect next year in Emissions Control Areas (ECAs)

The company, which has already announced the elimination of a route between Harwich, England and Esbjerg, Denmark, may have to further reduce service due to the rising costs, he added.

"The investment in technology and the higher price of low-sulphur fuel means prices will rise and we will have to look at what routes we operate," Jensen said.

The campaign, which is also being backed by British trade union The National Union of Rail, Maritime and Transport Workers (RMT), the UK Chamber of Shipping, and the British Chambers of Commerce, calls for the nation's government to compensate the maritime industry for the new rules or change the rules to give the industry more time to comply.