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Shipping Lines face cost increase

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As from 1st January 2015, the new EU sulphur directive will come into force, regulating the maximum allowed sulphur content of bunker fuel. The directive means that the sulphur content of the shipping line’s bunker fuel must be reduced dramatically from the turn of the year, from today’s 1.0% to 0.1%.

The directive includes all shipping trade on the Baltic, the North Sea and the English Channel (SECA­areas).

Shipping lines have a number of  choicesto limit the sulphur emissions before the turn of the year:

To change to cleaner (and much more expensive) diesel with lower sulphur content (0.1%)

To install purification technique such as “Scrubbers” on the ship’s exhaust pipes

To invest in new ships with alternative fuels such as LNG or Methanol

Irrespective of solution, this will cause an increase in costs within the freight transport sector,  and these costs may influence the entire supply chain.

Initially, many shipping lines are expected to change to diesel with lower sulphur content (0.1%).