WSC applauds IMO ship emission rules, says shipping costs will rise

Liner industry representative, the World Shipping Council, on Friday hailed new International Maritime Organization rules on ship emissions, but warned that they will raise the cost of ocean transportation.

During a five-day session in London that ended April 4, the IMO's Marine Environment Protection Committee (MEPC) agreed on amendments to the MARPOL Annex VI regulations that will require ships to use low-sulfur fuel in designated near-shore Emission Control Areas, first reducing permissible sulfur levels to 1 percent in 2010 and then 0.1 percent in 2015. Outside the control areas, the current global standard of 4.5 percent will become 3.5 percent by 2012, reducing to 0.5 percent sulfur content by 2020. The MEPC plan will be scheduled for formal adoption at its next meeting in October.

The changes that will result from these new IMO standards, which include reduction in nitrogen oxide emissions as well as sulfur, are substantial. They will address the role and responsibility of the maritime industry in improving air quality, especially in urban port areas that have air quality problems, said the WSC in a statement.

The liner group added that while the final product differs from past proposals, the result is a focused, specific and effective response. That is a hallmark both of a successful negotiation, and of the ability of the IMO to be an effective international leader and regulator of the maritime industry.

The WSC said the new standards could be met either by use of low-sulfur fuel or ships' installation of emission treatment technology.

These low-sulfur fuels, however, are considerably more expensive and will raise the cost of ocean transportation. In addition, the oil refining industry around the world will be tasked with producing a huge amount of product to meet these new standards. The IMO recognized the time and enormous capital investments the refining industry will need to make to produce adequate supplies of these fuels in the time required, said the WSC, which has offices in Washington D.C. and Brussels.

It also called on all port communities, maritime stakeholders and world governments to back the new IMO standards. In particular it urged the U.S. Congress to enact the necessary pending legislation to allow the United States to formally ratify the treaty. The Senate gave its advise and consent to the MARPOL Annex VI in April 2006.

The good faith and good work of the IMO and the international community on this issue now require the U.S. Congress to show similar resolve and action.