New EU regulation brings price increase to ferry operators
MARPOL, a European Union and International Maritime Organisation directive is requiring ferry companies to lower the sulphur percentage in fuel from 1%, applicable at the moment, to 0.1% by 1st January 2015. The basic rationale is to decrease the carbon footprints of ferries, ultimately aiming to improve air quality in Europe, because ferry engines contribute to the pollution levels.
Led by the new regulations ferries have to make significant changes to their fuel systems in order to comply with these new regulations. These changes can be switching to a more expensive reduced sulphur fuel such as Marine Gas Oil, fitting fuel “scrubbers” to the ship (with a cost of around €5 million per ship) or completely switch to Liquefied Natural Gas (LNG) fuel systems. The latter option is primarily being chosen by ferry operators who have commissioned brand new ferries to be introduced in coming years. All of these changes have an impact on the ferry companies who are left with little choice but to pass the additional costs onto their customers.
Ferry operators have not yet declared their final intentions, but it is expected that the directive will affect areas including the English Channel, North Sea and Baltic Sea regions.