Mon 16 Jul 2012, 07:17 GMT

Sulphur directive could push freight costs up by 25%


Association voices its concern regarding the recent EU agreement on the sulphur content of marine fuels.



The Irish Exporters Association has voiced its concern regarding the recent agreement by the European Council, Commission and Parliament on the sulphur content of marine fuels.

In line with the Annex VI of the MARPOL Convention, the limits for the sulphur content of marine fuels used in designated SO2 Emission Control Areas (SECAs) will be 1% until 31 December 2014 and 0.1% as from 1 January 2015.

The IMO standard of 0.5% for sulphur limits outside SECAs will be mandatory in EU waters by 2020. This will also be valid for passenger ships operating outside SECAs to which the current regime of 1.5 % applies until that date.

John Whelan [pictured], chief executive of the Irish Exporters Association, is quoted as saying: “Our concern is the knock on effect on freight rates for exports, which could be enormous - as high as 25 percent we estimate.’’

"Let’s be clear, we are not against cutting sulphur emissions, but pushing them down to 0.1 percent in this tight time frame is completely unreasonable.

"As a matter of urgency we have asked the Government to immediately seek a derogation from the Directive until such time as shipping technology can adjust to ensure the low sulphur requirements can be meet without major freight rate costs increases."


Global Ethanol Association (GEA) and Vale logo side by side. Vale joins Global Ethanol Association as founding member  

Brazilian mining company becomes founding member of association focused on ethanol use in maritime sector.

KPI OceanConnect Logo. KPI OceanConnect seeks marine fuel trading intern in Singapore  

Bunker supplier advertises role offering exposure to commercial and operational aspects of marine fuel business.

Frank Dahan, CSL Group. CSL Group's Frank Dahan appointed chair of IBIA's Americas regional board  

Dahan brings 29 years of marine transportation and energy experience to the role.

IMO Member States, Belgium delegation. Lloyd's Register, EXMAR, and Belgium’s Federal Public Service develop interim guidelines for ammonia cargo as fuel  

Guidelines expected to receive formal IMO approval in May 2026, enabling ammonia use on gas carriers.

Knut Ørbeck-Nilssen, DNV. DNV to lead Nordic roadmap Phase 2 for zero-carbon shipping transition  

Programme will identify green corridors and tackle cost barriers through new financing approaches.

Monjasa logo. Monjasa seeks trader for Dubai operations  

Marine fuel supplier recruiting for trading role covering sales, purchasing, and logistics in UAE.

IBIA Board Elections 2026 – Call for Nominations announcement. IBIA calls for board election nominations ahead of Friday deadline  

Association seeks candidates for 2026 board positions with submissions closing 12 December.

Fraua vessel. BMT Bunker adds tanker MT Fraua to fleet  

BMT Bunker und Mineralöltransport has expanded its fleet with a new vessel.

Ruby bunkering vessel. Island Oil expands Cyprus bunkering fleet with vessel Ruby  

Island Oil adds second bunkering vessel to strengthen marine fuel supply operations in Cyprus.

Wärtsilä and Aalto University partnership signing. Wärtsilä and Aalto University extend R&D partnership to accelerate marine decarbonisation  

Five-year agreement expands international collaboration on alternative fuels and clean energy technologies.