LOWER SULPHUR LEVELS IN SHIPPING - NOT SUSTAINABLE

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LOWER SULPHUR LEVELS IN SHIPPING - NOT SUSTAINABLE Powered By Docstoc
					                                                                                                                               transport




By KAROLINA BOHOLM

The decision to adopt new regulations was taken in secrecy with no
prior impact assessment done


Lower suLphur LeveLs in
shipping - not sustainable

                             T
                                     he global sulphur and nitrogen dioxide regu-       and enormous negative competiveness implications,
                                     lations of the Marpol Annex VI was a success       which should make all politicians shiver.
                                     for the IMO, but the even more stringent                The new IMO sulphur regulation will dramati-
                             regional sulphur rules of the Sulphur Emission Con-        cally affect costs for sea transports, which will lead
                             trol Area (SECA: English Channel, North Sea and the        to large cost increases and changed directions of
                             Baltic Sea) was a decision taken in darkness since no      logistics flows in Europe. Also, it will lead to a modal
                             impact assessment was conducted prior to the deci-         backshift to road, making short sea shipping not
                             sion. The SECA regulation will lead to trade-off effects   feasible in many cases as well as reducing competive-

                               Table 1 - TOTAL FUEL COST INCREASE BY INDUSTRY SECTORS IN MILLION € WITH DIFFERENT LEVELS OF PRICE
                               OF MARINE FUEL MGO, WHERE THE MIDDLE COLUMN IS REGARDED AS THE MORE LIKELY SCENARIO

                                                               662 USD/ton         +75% = 1,160 USD/ton +150% = 1,655 USD/ton
                                 Chemical industry                  5,459                  9,553               13,647
                                 Minerals and mining                3,586                  6,275                 8,965
                                 Forest industry                    1,497                  2,619                 3,742
                                 Agriculture                        1,275                  2,230                 3,186
                                 Soil and rock                        527                    922                 1,318
                                 Metal industry                       303                    530                   757
                                 Technology industry                  211                    368                   526
                                 Food industry                        108                    189                   270
                                 Forestry                               34                    60                    86
                                 Textiles                                1                     3                     4
                                 Sum                        
				
DOCUMENT INFO
Description: The global sulphur and nitrogen dioxide regulations of the Marpol Annex VI was a success for the International Maritime Organization (IMO), but the even more stringent regional sulphur rules of the Sulphur Emission Control Area (SECA English Channel, North Sea and the Baltic Sea) was a decision taken in darkness since no impact assessment was conducted prior to the decision. The new IMO sulphur regulation will dramatically affect costs for sea transports, which will lead to large cost increases and changed directions of logistics flows in Europe. In a report by the Swedish Maritime Administration, published in May 2008, it concludes that for the pulp and paper industry the regulations will lead to increasing marine fuel costs by 50%-80% or by 75% as an average, and to a sea transport cost increase of 30%-45%. Obviously, the regulation seriously affects the competitiveness of the industry and should not be implemented before all consequences are properly analyzed.
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