New sulfur directive January 1, 2015
On January 1, 2015, the new Sulphur Directive (Directive 1999/32 / EC, as last amended by Directive 2012/33 / EC) to take effect. This is an amendment to Annex VI of the MARPOL Convention, which regulates the maximum permissible sulfur content in marine fuel. The directive means that the sulfur content of marine fuel from CSOs end must be reduced dramatically from the current 1.0% to 0.1%.
The Directive covers all shipping on the Baltic Sea, North Sea and English Channel (SECA areas) and will have major implications in the transport sector.
Shipping companies working with different solutions
The shipping companies are now working full time with various solutions in order to limit sulfur emissions to year-end. The alternatives are mainly discussed:
- Switching to cleaner (and more expensive) diesel with lower sulfur content (0.1%)
- To install purification technology in the form of "scrubbers" on smokestacks of ships
- Buying new vessels which run on alternative fuels, eg LNG or methanol
Shipping companies will choose different solutions to cope with the new limits. Some technologies are still unproven and question marks are many but whatever solution comes this very controversial directive, bring large cost increases in transport. Costs will undoubtedly wander further into the logistics chain.
We therefore wish to draw your attention to upcoming cost increases already, then it may be good to keep in mind for future budgeting. Initially expected many companies choose option diesel with lower sulfur content (0.1%), which indirectly may affect the fuel cost of on-road traffic as the demand for diesel fuel with low sulfur content will increase.
Via the following websites you can read more about the Sulphur Directive: