Some have pointed to liquid natural gas as a third alternative however (and somewhat ironically) the natural gas supply chain is not yet stable enough to meet the demand and vessels would still need expensive retrofitting. Scrubbers can cost up to $14 million USD for a large vessel and take up to two years to install. and Canadian coasts.Ĭarriers can comply with ECA regulations through two options: switching to low-sulfur marine gas or buying a “scrubber.” Low sulfur emission fuels are highly filtered and can cost up to four times that of regular bunker fuels. Emission Control Areas (ECA) that will begin enforcement in 2015 include the Baltic Sea, English Channel, North Sea, and 200 nautical miles off of U.S. Starting January 1, 2015, carriers will require vessels traveling through designated Emission Control Areas (ECA) to use fuel with sulfur content of 0.1% or less, a drastic decrease from the 1.0% concentration fuel used in maritime shipping today.
High sulfur content fuel contributes to a significant amount of sulfur dioxide emissions, known to be hazardous to public health. Known by many names, the Low Sulfur Surcharge (LSS), Low Sulfur Bunker Surcharge, or Low Sulfur Fuel Surcharge (LSF), stems from an International Maritime Organization (IMO) regulation initially agreed upon in 2012 to reduce the amount of sulfuric fuel emissions being burned by cargo vessels near ports and populated coastlines. And yet, another surcharge is about to take center stage. East and West Coast labor issues, to the introduction of mega-vessels, to atypical peak seasons, and rate fluctuations. The maritime industry has been through quite a lot in the past few years, from carriers leaving the chassis business, to U.S.
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