P&O Ferries Update: Low Sulphur Update on Irish Sea Routes
P&O Ferries has released a statement;
As you may be aware a new environmentally friendly directive means that ferry operators must meet more stringent limits for Sulphur emissions for ships operating in IMO Emission Control Areas. From 1 January 2020, our Irish Sea vessels will operate within these areas.
To comply, all ferry operators have a choice: they can either run their ships on more expensive low Sulphur alternatives, as opposed to today’s higher Sulphur heavy fuel oil (HFO); or they can invest in abatement technology known as Sulphur scrubbers to effectively reduce the Sulphur emissions to the new low level of 0.5 percent.
We have chosen to convert our Irish Sea vessels to the use of Low Sulphur 0.5% fuel which will however, result in significant increases to our fuel costs for Irish Sea routes.
From 1 January 2020, we will be introducing a new fuel surcharge on all freight accounts shipping on our services to and from Larne and Dublin. This increase will of course vary from route to route and will be calculated and advised to you by your account manager in due course to allow ample time for you to inform your respective customers. It will take account of the BAF (Bunker Adjustment Factor) you are already paying plus the price differential of Low Sulphur 0.5%
We appreciate the additional burden this new Irish Sea legislation will place on the supply chain, but the additional costs of environmentally friendly compliance need to be absorbed and reflected in the prices charged to the end user, which in turn will enable P&O Ferries to maintain a robust network of hub-based services to meet your on-going requirements.
In the meantime, we shall continue operating in the most efficient manner possible, managing fuel economy and fuel conservation in an active manner whilst continuing to operate the most fuel-efficient freight ships to keep the increases in costs to an absolute minimum.