Environmental costs to shipping
At Nor-Shipping 2013, delegates heard that impending new legislation to protect the environment will present an industry wide cost of more than half a trillion US dollars between 2015 and 2025.
Masamichi Morooka, Chairman of the International Chamber of Shipping (ICS), said that this equates to around US$50n dollars of additional capital and operating cost in every single year for a 10 year period and beyond.
Much of these costs will result from the switch to low sulphur distillate fuel, assuming that a 0.5% global sulphur cap comes into effect in 2020, in addition to the 0.1% sulphur requirements that are expected to be enforced in Emission Control Areas in North West Europe and North America from 2015.
However, the costs of installing new ballast water treatment equipment will also be significant, as will the potential contribution that shipping might have to make to the UNFCCC Green Climate Fund.
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