New international rules on the limitation of sulphur emissions from ships

Friday, October 10, 2014

As of 1 January 2015, new rules (Emission Control Areas, ECA) will apply to sulphur emissions from ships. The rules mean that shipping companies will be obliged to use fuel oil with a sulphur content no higher than 0.1%. These new rules apply to the majority of Eimskip's sailing routes and will inevitably have an impact on fuel costs.

The regulation originates from the UN's resolution on more environmentally friendly marine shipping, which is implemented by the International Maritime Organisation. The object of the regulation is to make shipping operations more environmentally friendly by reducing the sulphur content of fuel oils.

The extent of the increase in costs due to the use of more expensive fuel oil that has lower sulphur content is not yet known, but it is clear that fuel costs will increase as a result of these changes. This will inevitably mean a recalculation of the oil surcharge (BAF) or the adoption of a separate surcharge to cover such costs. A new fee will come into effect as of 1 January 2015 and will develop in line with oil price developments.

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.

Further information on these changes will be announced as we draw closer to January.

Further information on ECA may be found through the following link.