THERE must be no more stringent environmental regulations for shipping without cost benefit analyses, says International Chamber of Shipping (ICS) secretary general Peter Hinchliffe.
International Chamber of Shipping demands impact studies on all eco rules,
THERE must be no more stringent environmental regulations for shipping without cost benefit analyses, says International Chamber of Shipping (ICS) secretary general Peter Hinchliffe.
Mr Hinchliffe criticised methods of introducing measures such a mandatory low sulphur bunker fuel use and ballast water treatment equipment, which he said will cost shipping US$500 billion.
New low sulphur fuel regulations have thrown the shipping industry into a dilemma over the most cost-effective way to reduce sulphur from exhaust fumes, London's Lloyd's List reported.
Scrubbing technology fitted on board is an option, but at a cost of US$1 million per unit. Another option is filling the ship with low sulphur diesel, but questions arise over the availability of the fuel and its cost.
The requirement to fit new ballast water treatment equipment is another cost. Although this convention has not yet been passed and put into force, the equipment will cost $1 million to $5 million per ship.
No more regulations should be devised without a thorough cost benefit analyses and impact assessments, he said.
In this way, the industry will be able to mitigate "any future tidal waves" of environmental regulation, he said at London International Shipping Week. The issue is crucial as shipping companies continue to face low earnings in a market bloated by too many ships competing for business.
