SWEDEN's Stena Line, whose shortsea work takes place wholly in the EU's low sulphur control zone, will cut services and increase freight rates 15 per cent when the costly eco-fuel mandate starts January 1.
"From an economic perspective, this is one of the largest negative political decisions since tax-free was discontinued," said a statement from the Gothenburg company.
"The reduction from two vessels to one on the Trelleborg-Sassnitz route is an example. Another is that Stena Line is now being forced to increase freight prices," it said.
For Stena Line, the changes mean increased fuel costs of SEK1 million (US$138,695) a day, or SEK450 million a year as a result of the more expensive low sulphur fuel.
Said Stena Line's CEO Carl-Johan Hagman: "The increasing fuel costs affect the North European export and import industry negatively because a significant share of transport is done by sea."
The company will using methanol at first. "At the same time we are investigating scrubber technologies and also looking at LNG as a fuel. Naturally, converting and rebuilding our ferries will take time and cost a lot of money," said Mr Hagman.
WORLD SHIPPING
26 September 2014 - 21:27
Shortsea Stena Line cuts service, ups rates with low sulphur fuel costs
SWEDEN's Stena Line, whose shortsea work takes place wholly in the EU's low sulphur control zone, will cut services and increase freight rates 15 per cent when the costly eco-fuel mandate starts January 1.
WORLD SHIPPING
26 September 2014 - 21:27
Shortsea Stena Line cuts service, ups rates with low sulphur fuel costs
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