Shipping lines face host of obstacles in jump to cleaner fuel
Shipping lines want to embrace low-sulphur diesel but cost, technical challenges and fears their rivals won't switch are holding them back
Cost, technical and commercial issues are among the reasons more shipping lines have not joined marine fuel switching initiatives that aim to cut air pollution from ships in Hong Kong, experts say.
Ship owners and operators have registered more than 560 ships with the Environmental Protection Department's incentive programme to use low-sulphur fuel since it was launched in September.
Around 18 shipping lines also signed the Fair Winds Charter, a voluntary scheme in which they agreed to switch to low-sulphur diesel "to the maximum extent possible" for two years from January 2011.
In return, the firms wanted the Hong Kong and Guangdong governments to introduce laws mandating the use of cleaner low-sulphur diesel by December 31, 2012. While regulations have yet to be introduced, several carriers including Maersk and CMA CGM indicated they would continue to support the charter in return for a government commitment to regulation.
Under the EPD scheme, ship operators get a 50 per cent reduction on port and navigation charges if registered vessels switch to burning low-sulphur diesel while berthed or anchored in Hong Kong. But low sulphur diesel is about 40 per more expensive than more heavily polluting marine diesel and the EPD scheme only covers between 30 and 45 per cent of this higher cost.
As a result, while shipping companies including Maersk, Orient Overseas Container Line, Mitsui OSK Lines and Hyundai Merchant Marine have registered fleets of 10-90 ships, other cost-conscious carriers have been more reticent.