New international rules on the limitation of sulphur emissions from ships (1)

Thursday, November 20, 2014

Our news from 10 October 2014 stated that new rules (Emission Control Areas / ECAs) for the sulphur
emissions from ships would come into effect on 1st January 2015. The Regulation is based on
the UN's resolution on more environmentally friendly marine shipping and involves reducing the
amount of sulphur in oils. The permissible sulphur content in oils is at present 1% but will become
0.1%. The Regulation is implemented by the International Maritime Organization / IMO.

Eimskip strives to be a leading shipping service company, and it is therefore both our duty and the
company's intention to be responsible in this field and to develop in tune with global demands
in environmental matters. The ECA Regulation is intended to have positive effects on the
environment, as the goal is to reduce the sulphur emissions of vessels in the ECA area by 90%.

As the map above shows, these new rules cover the sailing routes of Eimskip. As a result, they
inevitably have an impact on the company's fuel costs, as the fuel used in ECA areas is considerably
more expensive than the fuel currently used. The company will therefore be charging a Low Sulfur
Fuel Surcharge (LSS fee) as of 1st January 2015 as can be seen in greater detail in the table below.

Eimskip's customers will be receiving more detailed information about these changes as the effective date of the regulation approaches. Further information on ECA may be found on the website of the IMO here. We also encourage customers to call their contact person at Eimskip for further information.