Since the creation of the first Emission Control Area (ECA) in the Baltic Sea 10 years ago, Ocean Going Vessels are subject to stricter regulations both at global or regional level.
New Sulphur Regulation as from January 1st, 2015
Major SOx limit reduction
MARPOL Annex VI regulations for the prevention of Air Pollution from ships assigns Sulphur Oxides (SOx) Emission Control Areas (ECA) with more stringent controls on sulphur emissions.
Stricter regulations covering the sulphur content of fuel oil will be strengthened by local regulators (European Union, USA, Canada).
Over the years, ECAs have been extended to cover The Channel and North Sea, as well as North America and the Caribbean where the maximum sulphur content has been gradually reduced from 4.5% to just 1% to date. In 2015 IMO regulations set new limits at 0.1% sulphur, which presents significant challenges for the industry including Oil Majors, Shipping Lines and Shippers.
ECA SOx regulation application : Baltic Sea, the Channel and North Sea, North American and Caribbean seas.
CMA CGM enforces its long-term commitment to protect the environment with a focus on sustainable development. The Group will do its utmost to comply with the new regulation as from January 1st, 2015.
This directive will require ships to use fuel with a maximum allowed sulphur content of 0.1% in the ECA.
Impacts of SOx limit reduction on shipping lines
Marine Diesel Fuel with no more than 0.1% sulphur content is more expensive than Low Sulphur Fuel Oil (with 1.0% sulphur content). This higher price represents an additional cost of more than USD 100 million every year for CMA CGM, inflating expenditure.
Furthermore, technical issues when running the main engine with DO (Diesel Oil), such as temperature, viscosity or the size of the DO tank, will involve the upgrade of some vessels to comply with the new rules. This will also generate extra costs.
As a consequence :
- CMA CGM will implement a Low Sulphur Surcharge as from January 1st, 2015.
- Our experts keep on working on technical innovations to complement the Low Sulphur Fuel (LSF) regulation.