Tallink: Sulfur Regulation to Raise Shipping Prices ({{commentsTotal}})

Source: Photo: Postimees/Scanpix

More stringent EU restrictions on sulfur emissions set to take effect in 2015 will probably add on to the price of shipping for both ferries and cargo, said Tallink CEO Enn Pant at an annual conference organized by the business daily Äripäev today.

Currently, a maximum of 1 percent of emissions from ships can consist of sulfur. But the new regulation will reduce that restriction to just 0.1 percent, reported ERR radio.

Pant said it is still unclear how shipping companies will be able to achieve that reduction, but upgrades will certainly require investments.

He said price increases will have a bigger effect on freight traffic than on passenger traffic. The first, however, is likely to induce hikes in the costs of goods, thus also affecting consumers.

There are three main ways to reduce sulfur levels, Pant said - switching to more expensive diesel, using filter systems and introducing new types of fuel.



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