DENMARK's DFDS Seaways says the low-sulphur fuel mandate to be imposed in northern European waters from January will add 15 per cent to freight rates - they are not alone.
Samskip chief operating officer Diederick Blom, who expects fuel costs to soar 50 per cent, said the regulations may drive freight to road transport.
Short sea operators have already closed services expecting a shift to trucks in January, he said.
DFDS Seaways, whose routes include Dover-Calais, Dover-Dunkirk and Gothenburg-Immingham, told Lloyd's Loading List that the extra costs of marine gas oil (MGO) averaged out to be 15 per cent more.
Sweden's Stena Line estimates that the new low sulphur rules will add more than $€125,000 per day to its fuel costs.
Said Stena CEO Carl-Johan Hagman: "This is one of the largest negative political decision since tax-free shopping was discontinued."
A P&O Ferries spokesman said: "What is clear is that the low sulphur surcharge will trigger a re-think on the part of freight companies. The longer the crossing, the more the impact of the surcharge will be felt."
He too feared changes in traffic patterns: "Rather than use a Hull-Rotterdam service, they may truck down to Harwich or Dover to reach the Hook of Holland. Eurotunnel is sitting pretty - its truck shuttle services are not affected by low-sulphur rules and that could generate new business."
From January 1 Emissions Control Area (ECA) rules mandate ships operating in the English Channel the Baltic and North Sea must use a low sulphur which costs 50 to 60 per cent more depending on time and place of purchase.
Fuel represents 33 per cent of short sea operating costs with surcharges likely to be calculated on the basis of routes rather that a flat bunker surcharge.
WORLD SHIPPING
09 October 2014 - 21:37
Low-sulphur mandate to add 15pc to European shortsea freight rates
DENMARK's DFDS Seaways says the low-sulphur fuel mandate to be imposed in northern European waters from January will add 15 per cent to freight rates - they are not alone.
WORLD SHIPPING
09 October 2014 - 21:37
Low-sulphur mandate to add 15pc to European shortsea freight rates
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