RIGA — Baltic ports could lose part of their competitive edge over other ports in Europe because of a new requirement that restricts the use of sulphur-heavy fuels.

Estonia, Latvia and Lithuania benefit from their position in between Russia and the Atlantic Ocean. Russian businesses use the Baltic ports because of their geographic location, good infrastructure and pricing. Over the world, different levels of sulphur are acceptable depending on the government. In some places, fuel with [private_supervisor]11.4 percent sulphur is used. Currently in the Baltic Sea, fuels with 4.5 percent sulphur is acceptable.

However, the acceptable sulphur limits will be cut down in 2012 to 3.5 percent and 0.5 percent by 2025, which will force shipping companies to pay for more expensive fuel.

The higher grade fuel in fact would cost between 50-70 percent more per ton, encouraging shipping companies to look for alternatives when shipping goods to and from Europe. Ferries will also be hit hard as they already have a hard time competing with road transport.

The decision adopted by the International Maritime Organization to reduce ship pollution will affect the North and Baltic seas for EU countries. Russia has not ratified the protocol.

The decision has prompted industry leaders to say that Baltic ports will suffer not only at the hands of Mediterranean ports, but also Russian ports in the Baltic Sea, which do not follow the rules.

“The decision to use fuel only in the region with a low 0.1 percent sulfur content was taken without careful analysis. The Finnish, Swedish, German and British experts analyzed the situation without using their heads … a ship’s fuel price will rise 50-70 percent and charges for transport will rise 20-30 percent,” the Lithuanian Shipowners’ Association executive director Gintautas Kutka said.

Russia has both the Kaliningrad, St. Petersburg and Ust-Luga ports on the Baltic Sea. Russia has indicated that it is looking to upgrade its own ports to wean itself off the Baltic ports as it is, although recent reports on Russia’s foreign ministry policy proposals seem to contradict this.[/private_supervisor] [private_subscription 1 month]11.4 percent sulphur is used. Currently in the Baltic Sea, fuels with 4.5 percent sulphur is acceptable.

However, the acceptable sulphur limits will be cut down in 2012 to 3.5 percent and 0.5 percent by 2025, which will force shipping companies to pay for more expensive fuel.

The higher grade fuel in fact would cost between 50-70 percent more per ton, encouraging shipping companies to look for alternatives when shipping goods to and from Europe. Ferries will also be hit hard as they already have a hard time competing with road transport.

The decision adopted by the International Maritime Organization to reduce ship pollution will affect the North and Baltic seas for EU countries. Russia has not ratified the protocol.

The decision has prompted industry leaders to say that Baltic ports will suffer not only at the hands of Mediterranean ports, but also Russian ports in the Baltic Sea, which do not follow the rules.

“The decision to use fuel only in the region with a low 0.1 percent sulfur content was taken without careful analysis. The Finnish, Swedish, German and British experts analyzed the situation without using their heads … a ship’s fuel price will rise 50-70 percent and charges for transport will rise 20-30 percent,” the Lithuanian Shipowners’ Association executive director Gintautas Kutka said.

Russia has both the Kaliningrad, St. Petersburg and Ust-Luga ports on the Baltic Sea. Russia has indicated that it is looking to upgrade its own ports to wean itself off the Baltic ports as it is, although recent reports on Russia’s foreign ministry policy proposals seem to contradict this. [/private_subscription 1 month] [private_subscription 4 months]11.4 percent sulphur is used. Currently in the Baltic Sea, fuels with 4.5 percent sulphur is acceptable.

However, the acceptable sulphur limits will be cut down in 2012 to 3.5 percent and 0.5 percent by 2025, which will force shipping companies to pay for more expensive fuel.

The higher grade fuel in fact would cost between 50-70 percent more per ton, encouraging shipping companies to look for alternatives when shipping goods to and from Europe. Ferries will also be hit hard as they already have a hard time competing with road transport.

The decision adopted by the International Maritime Organization to reduce ship pollution will affect the North and Baltic seas for EU countries. Russia has not ratified the protocol.

The decision has prompted industry leaders to say that Baltic ports will suffer not only at the hands of Mediterranean ports, but also Russian ports in the Baltic Sea, which do not follow the rules.

“The decision to use fuel only in the region with a low 0.1 percent sulfur content was taken without careful analysis. The Finnish, Swedish, German and British experts analyzed the situation without using their heads … a ship’s fuel price will rise 50-70 percent and charges for transport will rise 20-30 percent,” the Lithuanian Shipowners’ Association executive director Gintautas Kutka said.

Russia has both the Kaliningrad, St. Petersburg and Ust-Luga ports on the Baltic Sea. Russia has indicated that it is looking to upgrade its own ports to wean itself off the Baltic ports as it is, although recent reports on Russia’s foreign ministry policy proposals seem to contradict this. [/private_subscription 4 months] [private_subscription 1 year]11.4 percent sulphur is used. Currently in the Baltic Sea, fuels with 4.5 percent sulphur is acceptable.

However, the acceptable sulphur limits will be cut down in 2012 to 3.5 percent and 0.5 percent by 2025, which will force shipping companies to pay for more expensive fuel.

The higher grade fuel in fact would cost between 50-70 percent more per ton, encouraging shipping companies to look for alternatives when shipping goods to and from Europe. Ferries will also be hit hard as they already have a hard time competing with road transport.

The decision adopted by the International Maritime Organization to reduce ship pollution will affect the North and Baltic seas for EU countries. Russia has not ratified the protocol.

The decision has prompted industry leaders to say that Baltic ports will suffer not only at the hands of Mediterranean ports, but also Russian ports in the Baltic Sea, which do not follow the rules.

“The decision to use fuel only in the region with a low 0.1 percent sulfur content was taken without careful analysis. The Finnish, Swedish, German and British experts analyzed the situation without using their heads … a ship’s fuel price will rise 50-70 percent and charges for transport will rise 20-30 percent,” the Lithuanian Shipowners’ Association executive director Gintautas Kutka said.

Russia has both the Kaliningrad, St. Petersburg and Ust-Luga ports on the Baltic Sea. Russia has indicated that it is looking to upgrade its own ports to wean itself off the Baltic ports as it is, although recent reports on Russia’s foreign ministry policy proposals seem to contradict this. [/private_subscription 1 year]

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