Stena Line : Shipping Industry Moving Away from HFO "a Lot Quicker than Many of us Think"

Stena Line's CEO says the shipping industry is moving toward environmentally sustainable operations faster than thought.

The shipping industry in moving away from using HFO bunkers and towards a greater level of environmental stability a lot fast then some think, according to Stena Line CEO Carl-Johan Hagman, who was speaking this week at the International Chamber of Shipping (ICS) conference at London International Shipping Week, Splash 24/7 reports. 

“There is going to be change, and I would argue that we are moving out of heavy fuel oil and, whichever way we twist and turn, we’re probably heading that way a lot quicker than many of us think,” said Hagman, pointing to the implementation of Sulfur Emission Control Areas (SECAs) as the impetus for the industry to make such operational improvements so fast.

“We think that the refining industry has responded a lot quicker than we ever would have thought. A year ago, it was simply not available to have the qualities of fuel that we have today.”

Compliance with the SECAs, in which the majority of Stena Line's vessels sail, is reported to cost the company about €50 million ($56.07 million) per year - a cost that, because of low bunker prices, is said to have been successfully passed on to its customers.

Hagman asserts that environmental regulation for the shipping industry must be implemented on a global level rather than on just a regional basis and points to the International Maritime Organization (IMO) as the appropriate body to take action.

“There are no guidelines as to how this will develop. We have to step up and be part of that conversation and I can only endorse that that is to be done through the IMO," said Hagman. 

"It is only when we have a level playing field that we will be able to develop quality shipping.

“I can only hope that the actions that we take go hand-in-hand with the IMO. If we open up to local legislation, not only does it hamper our industry, but definitely it opens up to protectionism.

“I think the beautiful part of shipping is that we are contributing to globalisation and the prosperity of humanity, and therefore doing good is doing well for our industry, but only if we do it together and through the IMO.”

In April, Stena Line announced that the world's first methanol powered ferry, Stena Germanica, entered service between Kiel and Gothenburg.