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Danish logistics firm Unifeeder A/S has announced that it will be introducing a new Sulphur Emission Control Area (SECA) surcharge in 2015 to cover the additional cost of switching to low sulphur fuel in order to meet new International Maritime Organisation (IMO) legislation.

In a statement, the company said: "From 1st January 2015, new EU environmental legislation will take effect which aims at ensuring a substantial reduction in marine sulphur emissions in Northern Europe to the benefit of the environment. This legislation covers a large geographic area extending from the English Channel into the Baltic Sea, termed as the Sulphur Emission Control Area (SECA).

"In a nutshell, the EU legislation means that vessels operating in the SECA from 1st January 2015 will be allowed a maximum sulphur content in their fuel of 0.1% compared to today’s limit of 1.0%. Alternatively, the exhaust gas must be cleaned to obtain an equivalent reduction. This legislation originates from the United Nations International Maritime Organisation (IMO), and further information can be obtained by reading the MARPOL Convention from the IMO.

"Transport at sea is already today the most environmentally friendly mode of transport, and the 90% reduction in sulphur emission should encourage shippers to move more cargo away from higher polluting modes of transport and onto the sea.

"In Northern Europe, Unifeeder vessels operate exclusively in the SECA, and the new legislation will therefore have a direct impact on the type of fuel that we can use. Effectively, Unifeeder must switch from using traditional low sulphur Intermediate Fuel Oil (IFO LS) to Marine Gas Oil (MGO) in order to ensure a reduction from 1.0% to 0.1% sulphur content. This unfortunately comes at a cost premium, as the more environmentally friendly MGO is approximately 50% more expensive than the current low sulphur IFO.

"As this cost increase is outside our control, we will introduce a SECA surcharge of EUR 65 per loaded TEU for all our shortsea clients. This will come into effect in line with new legislation on the 1st January 2015. The surcharge equals Unifeeder’s cost increase of switching to MGO instead of IFO LS based on current cost levels and indications from the bunker market and has been calculated as follows: [Total IFO LS fuel consumption in tonnes x price increase per tonne / loaded TEUs]. Should the level of MGO move significantly lower or higher than indication received, Unifeeder will in line with other surcharges periodically advise of any changes in the surcharge.

"We will maintain our existing Bunker Adjustment Factor (BAF) and implement the SECA cost as a separate surcharge.

"Unifeeder is committed to clean shipping and environmentally optimal solutions, and we will naturally adhere to the new legislation. As a consequence, we have joined the Trident Alliance, which consists of vessel owners and operators, who take an active role in ensuring commitment to and enforcing of the sulphur emission reduction."

Image: Unifeeder vessel.