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Strict EU plans to reduce sulphur emissions from ships are causing growing concern
he region's businesses are putting up a fight against proposed EU plans that could see fuel prices rocket and have a detrimental effect on jobs.
Strict EU plans to reduce sulphur emissions from ships are causing growing concern among businesses in the region.
Now, the Hull and Humber Chamber of Commerce's Shipping Committee has written to Transport Minister Mike Penning expressing concerns over the impact the limits could have on the region's shipping industry.
Proposed new restraints on the maximum sulphur content of shipping fuels will come into effect in 2015 and under new laws, the maximum sulphur content of fuels used by ships operating in "sulphur emission control areas" - which include the North Sea, the Baltic Sea and the Channel - will be limited to 0.1 per cent.
This could be a move that would see increases in fuel costs of up to 87 per cent, bringing a serious threat to the industry and its employees. The current limit is 1 per cent.
The chamber's committee, which represents businesses including Associated British Ports, GXD Logistics and LV Shipping, fears impacts could have a negative effect on a number of businesses.
Graham Cross, of Goole-based GXD Logistics and chairman of the Shipping Committee, said the committee accepts the need to progress in reducing the impact of existing fuel on the local environment, in terms of air pollution and effects on health, but businesses are concerned the proposals would come into action too quickly.
Mr Cross said: "There was no phased introduction and no level playing field - there will be issues as a result.
"There needs to be more discussions and a possible phased introduction in conjunction with dialogue from the industries that are going to be affected and engagement with the maritime industry to introduce it in the correct way."
Business leaders have also highlighted concerns over plans resulting in more trade moving by road as the cost of sea transport rises.
Mr Cross said: "We are anticipating a modal shift to transport by road, which will lead to increased congestion, particularly around the ports area.
"Negative consequences may also become apparent for the road haulage sector.
"Profit margins are already incredibly narrow, and with shipping operators needing to increase their charges to customers to cover their own increased costs, road haulage firms may see it necessary to travel longer distances by road to shorter sea crossings."
Dominic Yeardley, of Hull's Eurovision Logistics, said the increase could mean haulage companies lose out on business if they are forced to pass on extra costs to customers as a result.
He said: "This proposed plan opens a whole plethora of potential problems.
"It will affect different industries in different ways but one thing it will do is pass costs on, which is the last thing companies need."
The Shipping Committee has also expressed concerns over the effect on tourism as a result of the plans.
P&O Ferries, which operates about 700 crossings from Hull each year, said prices for longer routes will have to rise substantially as a result of the plans and the business expects the overall market for longer routes to shrink as a result.
John Garner, P&O Ferries fleet director, said the higher cost of ultra-low sulphur fuels means an increased burden on the shipping industry of up to £3.6 billion if the proposals come into force.
He said: "We have already called on the UK Government to act on this issue and work with its European partners to defer the implementation of the proposals so that a full study of the economic, social and environmental impact can be completed.
"We welcome calls from the local business community to urge the Government to put pressure on the European Commission for reconsideration of the legislation."
Post to be found at:
http://www.safety4sea.com/page/12995/22/shipping-firms-to-fight-eu-emissions-proposal
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