Dryad: 2015 ECA Rules Mean Inevitable Extra Costs

Bunkers represent just one of the likely cost increases for ECA shippers

Maritime consultants Dryad Maritime (Dryad) Friday said that the 2015 Emissions Control Area (ECA) sulfur cap changes will mean inevitable cost increases for shipowners.

"Firstly, ships' costs structures will change as increased bunker costs are unavoidable," Karen Jacques, Asia Pacific Director for Dryad.

Compliance with the new ECA rules means paying a premium for bunkers with no more than 0.10 percent sulfur content by weight, or investing in an alternative method of compliance such as scrubbing technology or the ability to use Liquified Natural Gas (LNG) bunkers.

Ship & Bunker data this week 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, but this remains a significant addition to shipowners' operating costs.

However Dryad said the additional expense associated with ECA compliance goes further than just the cost of compliant bunkers.

"There will inevitably also be additional costs associated with the requirement for additional bunkering to carry the necessary volumes of the different grades of bunkers," said Jacques.

In order to carry different types of fuel, Jacques said many ships will need to be redesigned to subdivide tanks or create conditions necessary for housing different fuels side-by-side.

In addition, more frequent bunkering and administrative procedures will likely be necessary, with associated time and money costs.

"Then there is the requirement for engine modifications (due mainly to difference in oil viscosity) and the considerable costs of these projects across shipping fleets," added Jacques.

While there has been speculation that deliberate non-compliance with the new ECA rules could actually save money for operators, JBC energy this week said that it expects that the currently low bunker prices will encourage more shipowners to comply.