FUELLING THE FUTURE
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FUELLING THE FUTUREDavid Balston
Director Safety & EnvironmentUK Chamber of Shipping
20 June 2013
MINISTERIAL U TURN?
Retrofit scrubbers LNG and alternate fuels
Use of low sulphur fuel
OPTIONS FOR MEETING THE REGULATIONS
Increase in ticket prices
Increase in fuel costs
Change in relative prices
More road miles driven
Reduced shipping activity
Lower sulphur fuel costs more ...
• Range of values is $275-350 per tonne, with an average of $315 per tonne.
• Assumes that fuel is available and can be imported.
• Refinery capacity and competition for middle distillate could cause a general increase in the price faced by all users.
• Effect on road diesel ~ 2.76p per litre = £720 Million in increased cost for drivers.
Ticket prices increase...
• Western Channel– Passengers; an average of 8% and 13%, – Lorries and unaccompanied trailers; between 8% and 29%,
• North Sea and container routes– Passengers; between 5% and 20%. – Lorries; between 5% and 21%; – Unaccompanied trailers and containers between 5% and
17%• Unsurprisingly the longer the journey the greater the price
Estimate of Km’s switched to road in UK
Route viability Western Channel
Route viability North Sea
Loss of business activity
Negative environmental impacts
TRANSITIONAL ARRANGEMENTSTO AVOID:
UK CHAMBER OF SHIPPING