FUELLING THE FUTUREDavid Balston

Director Safety & EnvironmentUK Chamber of Shipping

20 June 2013

MINISTERIAL U TURN?

4

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

Modal shift

More road miles driven

Environmental impacts

Reduced shipping activity

Employment impacts

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

increase

Estimate of Km’s switched to road in UK

North Sea

Western Channel

Route viability Western Channel

Route viability North Sea

11

Route closures

Job losses

Loss of business activity

Negative environmental impacts

TRANSITIONAL ARRANGEMENTSTO AVOID:

12

ANY QUESTIONS?

UK CHAMBER OF SHIPPING