ECA compliance much cheaper than expected

As a result of the big fall in oil prices in the second half of 2014, compliance with the sulphur emission control area (ECA) regulation is less costly than originally expected. In January 2015, the price of ECA-compliant 0.10 per cent sulphur marine gas oil (MGO) in Rotterdam was under US$ 470 per metric tonne. That is roughly equivalent to the October 2014 price for low-sulphur intermediate fuel oil with around 1 per cent sulphur content. It is also some US$ 150 less than the price of high-sulphur heavy fuel oil in June last year when bunker prices peaked.

This means that, despite the tightening of the ECA sulphur limit from 1.0 per cent to 0.10 per cent as from 1 January 2015, the cost of running a ship in an ECA is now lower than it was in the first half of 2014, when the regulations were looser.

Source: Sustainable Shipping News, January 2015

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