Norden president and chief executive Carsten Mortensen has added to the argument for more realistic and practical emissions regulations, stating that as it becomes increasingly difficult for owners to juggle the challenges of meeting environmental expectations there are key issues that need to be addressed, ifw-net reports.
The major Danish shipowner, which operated an active fleet of 216 vessels during the third quarter and managed to post a $58m net profit for the first nine months of the year, will be directly affected by both CO2, SOx and NOx emissions regulations being implemented by the International Maritime Organization.
“I think one should continue to find innovations that can reduce emissions but one should be realistic,” Mortensen said.
This was particularly true of SOx and NOx particulate matter regulations, as it was “becoming more and more challenging to be a shipowner now that you have to have more and more grades of different fuels on board your ships”.
Like many others, he has major concerns over the implementation of sulphur emissions control areas, where ships can at present only burn fuel with 1% sulphur content, a level which is set to reduce to 0.1% in 2015.
Although his company conducted little business in the Baltic Sea — an example of one SECA — it would affect Norden’s operations in northern Europe.
A report in IFW’s sister publication, Lloyd’s List, notes that sheer volume of shipping traffic in northern Europe will require a huge supply of ultra low sulphur fuel to be made available. If supply ends up being limited and prices increase, leading to greater transport costs, cargo companies and traders may prefer land-based freight.
“We don’t want a modal shift from the sea to the roads because they are already congested and it would not be good for the environment,” Mortensen said. “You have to have the infrastructure and distillates available; there are many issues to this.”
The squeeze on distillates supply has been highlighted in the last few weeks, as the price of bunker fuel at various ports around the world has carried on rising despite crude oil prices not being at their highest levels this year.
The major Danish shipowner, which operated an active fleet of 216 vessels during the third quarter and managed to post a $58m net profit for the first nine months of the year, will be directly affected by both CO2, SOx and NOx emissions regulations being implemented by the International Maritime Organization.
“I think one should continue to find innovations that can reduce emissions but one should be realistic,” Mortensen said.
This was particularly true of SOx and NOx particulate matter regulations, as it was “becoming more and more challenging to be a shipowner now that you have to have more and more grades of different fuels on board your ships”.
Like many others, he has major concerns over the implementation of sulphur emissions control areas, where ships can at present only burn fuel with 1% sulphur content, a level which is set to reduce to 0.1% in 2015.
Although his company conducted little business in the Baltic Sea — an example of one SECA — it would affect Norden’s operations in northern Europe.
A report in IFW’s sister publication, Lloyd’s List, notes that sheer volume of shipping traffic in northern Europe will require a huge supply of ultra low sulphur fuel to be made available. If supply ends up being limited and prices increase, leading to greater transport costs, cargo companies and traders may prefer land-based freight.
“We don’t want a modal shift from the sea to the roads because they are already congested and it would not be good for the environment,” Mortensen said. “You have to have the infrastructure and distillates available; there are many issues to this.”
The squeeze on distillates supply has been highlighted in the last few weeks, as the price of bunker fuel at various ports around the world has carried on rising despite crude oil prices not being at their highest levels this year.