IMO Convention / Emission levels

The International Maritime Organization (IMO) in London has issued new regulations concerning exhaust emissions from ships on the Baltic Sea, which takes effect as of 19th May 2006.

The new regulations stipulate that the sulphur content of diesel or heavy oil is to be reduced from the current maximum level of 4.5% to a maximum of 1.5% in future.

The aim is to reduce the environmental impact both of fuel production and of shipping operations.

All the experts in the fuel manufacturing and trading industries expect that the modified and more cost-intensive production methods will lead to an increase in the price of fuels following implementation of the new regulations.

As a shipping company, we will therefore undoubtedly be confronted with a further considerable increase in bunker oil costs in the near future.

At present, the views of experts still differ as regards the estimated cost of implementing the regulations, but all are agreed that a substantial rise is to be expected.

Scandlines would therefore like to inform you in advance that there might be a further increase in our fuel surcharges in consequence of a possible rise in market prices as of May 2006.

You can obtain detailed information about the new IMO regulations at www.imo.org. Please do not hesitate to contact us with any queries.

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