WORLD shippers are unaware that new UN emissions regulations will add billions of dollars to freight costs, according to a new analysis by London's drewry Maritime Research.
'The cost for 2024 ranges between US$3.5 billion and US$14.5 billion depending on the extent to which the industry switches to LNG and other greener ships instead of keeping to conventional fuel oil,' said the study, reports Hong Kong's Asia Cargo News.
Drewry said that besides regulatory changes resulting from decarbonisation policies, emissions limits and related taxes, will result in enormous technological changes in ship design propulsion as vessels transition to low or zero carbon fuels.
'Overall, the transition towards low or zero carbon shipping will result in higher costs,' said Philip Damas, managing director of Drewry, adding that the company put together the first independent cost model to help shippers forecast and quantify additional medium-term direct costs.
Drewry said in its report that the European Union will be the first region to enforce carbon taxes in shipping via its Emission Trading System, which will penalise users of high-carbon fuels such as conventional fossil fuels and apply not only to shipments within Europe but also to all shipments to and from Europe.
SeaNews Turkey
'The cost for 2024 ranges between US$3.5 billion and US$14.5 billion depending on the extent to which the industry switches to LNG and other greener ships instead of keeping to conventional fuel oil,' said the study, reports Hong Kong's Asia Cargo News.
Drewry said that besides regulatory changes resulting from decarbonisation policies, emissions limits and related taxes, will result in enormous technological changes in ship design propulsion as vessels transition to low or zero carbon fuels.
'Overall, the transition towards low or zero carbon shipping will result in higher costs,' said Philip Damas, managing director of Drewry, adding that the company put together the first independent cost model to help shippers forecast and quantify additional medium-term direct costs.
Drewry said in its report that the European Union will be the first region to enforce carbon taxes in shipping via its Emission Trading System, which will penalise users of high-carbon fuels such as conventional fossil fuels and apply not only to shipments within Europe but also to all shipments to and from Europe.
SeaNews Turkey