IMO regulators have arrived at the next stage of cleaner shipping regulation, sulphur cap in hand, and will alter the face of shipping as a result. Shipowners fear that the new regulation will create an uneven environment with the new sulphur regulations offering an incentive for unscrupulous ship operators to ignore the regulation allowing them to undercut operators who do comply. "When you have a very high compliance cost, coupled with a weak enforcement environment the temptation not to comply is created," argues Roger Strevens, VP global head of environment at Wallenius Wilhelmsen Logistics and a member of the Trident Alliance, an owners group formed in July this year to offer an owners’ view on the regulation. Strevens is under no illusions how the industry will be affected by the new operating landscape. Up to now, he says, fuel has comprised 50% of an owner’s costs, from January that will leap by another 50% as compliant owners will need to either use scrubbers, if they are fitted, or buy low sulphur fuel (LSF) at around US$900/tonne. "Few industries could absorb that level of cost increase and shipowners are not used to passing on such costs to customers," claims Strevens. According ...
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