New emission norms to add to the cost pressure on India's shipping firms

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Sep 2011

The new emission norms set by the International Maritime Organisation (IMO) will add to the cost pressure on India's shipping firms, which are already reeling under

low freight rates and high fuel prices, Exim News Service reports.
As a result, domestic shipping firms may have to shell out more than Rs 1 crore per ship to lower the sulphur content in bunker fuel, say industry analysts.
The new emission standards are likely to come into force by 2011-end or early 2012 with the aim of reining in the significant amount of air pollutants and greenhouse gases emitted by cargo ships and oil tankers.
With emission from ships increasing 100 per cent since 1990, industry experts expect the figure to continue to grow at 2.5 per cent per year.
The IMO introduced the new emission norms in August. According to a senior executive of Drewry Shipping Consultants, not only has the conversion kit (to lower sulphur content in fuel) now become integral to shipping, even scrubbers (used to reduce sulphur) have maintenance costs, which mean rising overall costs.
Source: Transport Weekly